In a white paper on tax issues, SIFMA warned the House Ways and Means Committee that tax reforms that changed the status of municipal bonds could have risky consequences. "The value of families' savings would be eroded significantly if Congress retroactively imposed a full or partial tax on municipal interest," SIFMA said. "The tax exemption is better than direct subsidies for infrastructure investment because bonds must be repaid, forcing a market test of the project's viability." Read SIFMA's white paper.

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