Issue Overview & Legislative Proposal:
| Preserving Tax-Exempt Bonds |
Issue Brief:
Tax-exempt bonds are facing a number of current threats. These include market and investment challenges, Congressional attacks, and a host of industry uncertainty. Congress and the White House are actively considering alternative and largely unproven bond finance structures, and one think tank recently suggested that tax-exempt bonds were inefficient, despite a 30 year record of job creation.
The deficit reduction discussion has also affected tax-exempt bonds and CDFA has been following the process closely to determine the potential impact on the development finance industry.
The debt ceiling and deficit reduction deal struck in August 2011 calls for the creation of a bipartisan, 12-lawmaker panel tasked with finding an extra $1.2 trillion in spending cuts. CDFA sources have indicated that the panel will be examining the potential elimination of tax-exempt bonds.
Resources:
Members of Super Committee:
Senate:
House Of Representatives:
CDFA's Preserving Tax-Exempt Bonds Campaign
CDFA has launched an aggressive campaign to educate Congress on the vital importance of tax-exempt bonds. This campaign has included letter writing, case study collection and lobbying on Capitol Hill. Our efforts are only just beginning. We will also be releasing a built-by-bonds publication focusing on the importance and impact that tax-exempt bonds have had throughout the country, highlighted by project snapshots and job creation figures from every state.
Urgent Action Item:
CDFA has begun a targeted letter-writing campaign now that the debt ceiling deal is completed. We ask that industry stakeholders send letters to the House and Senate members in their state to remind them that tax-exempt bonds should not be part of the deficit reduction plan going forward. To make this process easier, we have created sample letters for your use.
Download the sample letters provided below and modify them to fit your letterhead. You can go online to see your House and Senate contact information. Email and fax letters to your representatives ASAP. Please also copy CDFA on any correspondence, and we will follow-up with the appropriate office holder.
Resources:
Built-by-Bonds Publication
Built by Bonds is a unique CDFA publication that articulates the importance of tax-exempt bonds throughout the country by explaining tax-exempt bond financing in a straight-forward and honest manner.
Built by Bonds covers bond finance basics, types of bonds, and the historical significance of the tax exemption, and includes a special section that sets the record of tax-exempt bonds straight by debunking common myths of the financing tool. CDFA also looks at job creation and economic development through the use of tax-exempt bonds in all 50 states.
Built by Bonds Press Conference
Please join CDFA for a Press Conference on
Monday, November 7, 2011 at 11:00 AM EST to hear from the author of this publication. You can attend this free, one-hour conference call using the following information:
Call-in Number: (605) 475-6006
Access Code: 203525