During the nearly two months since President-elect Donald Trump was elected, market groups have expressed concern over the future of the tax exemption of munis due to the Republican’s lack of detail in his tax proposal.
Those concerns were temporarily quelled earlier this month after Trump told representatives from the USCM that he supports the tax break used to provide low-cost borrowing for state and local governments for more than a century. While muni groups were encouraged by the news, they said they will still remain vigilant in lobbying for the exemption on the Hill.
“Until we see it set in stone that the exemption is maintained we’re going to continue to educate and promote our desire for the exemption to remain intact,” said Jessica Giroux, general counsel and managing director of federal regulatory policy for Bond Dealers of America.
Emily Brock, director of the Government Finance Officers Association’s federal liaison center, who called the start of the new administration a “hectic and exciting” time, said GFOA will continue to stress the importance of the exemption in providing for low-cost infrastructure to administration officials.
“We would absolutely love to see the preservation of the exemption of muni bond interest,” Brock said. “In addition, we would also like to see the state and local [tax] deductibility as well. We will continue to nurture this partnership.”