DISGRACEfrom page 9usmayors.orgPage 10 U.S. <strong>MAYOR</strong> April 29, 2013
WASHINGTON OUTLOOKBy Larry JonesConference <strong>of</strong> Mayors CEO and ExecutiveDirector Tom Cochran convened ameeting <strong>of</strong> diverse organizations (representingairports, housing, education,labor unions, roads and transportation,economic development, bond dealers,public power, state and local governments,general contractors and manyothers) on April 22 to discuss a strategyto protect municipal bonds from effortsto cap or eliminate the tax deduction oninterest earnings for investors. More than50 organizations attended the April 22meeting, where representatives talkedabout a proposal in the Administration’s2014 budget that would cap the taxdeduction on municipal bond interest fortop income earners at 28 percent; and aproposal in the Senate budget that <strong>of</strong>fersalternatives that would cap or eliminatethe deduction. Groups were united inopposition to both proposals.The April 22 gathering grew out <strong>of</strong>an earlier Big 7 meeting (a coalition <strong>of</strong>state and local government groups thatmeet monthly to share information andwork together on <strong>issue</strong>s <strong>of</strong> common interest;which, in addition to The U.S. Conference<strong>of</strong> Mayors, include the NationalGovernors Association, National Conference<strong>of</strong> State Legislatures, Council <strong>of</strong>State Governments, National Association<strong>of</strong> Counties (NACo), National League <strong>of</strong>Cities (NLC) and the International CityManagement Association) at which representativesagreed to work together toactively oppose the 28 percent cap and<strong>full</strong> elimination <strong>of</strong> the tax-exemption onmunicipal bond interest. Representativesfeel strongly that both proposals wouldshift the burden <strong>of</strong> funding critical infrastructurefrom the federal, exclusively tostate and local governments.During the Big 7 meeting, Cochraninformed those in attendance <strong>of</strong> theprogress that the Conference <strong>of</strong> Mayorshad achieved in working with NLC andNACo. He mentioned a study released bythe three organizations that shows howstate and local governments would have60 organizations joined with the Conference <strong>of</strong> Mayors,NLC and NACo in signing a letter that was sent to SenateMajority Leader Harry Reid (NV) and Senate MinorityLeader Mitch McConnell (KY) expressing concern aboutthe municipal bond language in the Senate 2014 budgetproposal and urging them to support the continuation<strong>of</strong> the current tax-exempt status <strong>of</strong> municipal bonds.Organizations ComeTogether to Fight Efforts toCap Tax-Exempt Status <strong>of</strong>Municipal Bondsspent $173 billion more to finance infrastructureprojects over the last decade ifthe 28 percent cap had been in placeand $495 billion more if the deductionhad been eliminated.Cochran told the group that SenatorMark Begich (AK) and 13 other DemocraticSenators sent a letter to PresidentObama on behalf <strong>of</strong> state and local governmentscautioning against shifting theburden <strong>of</strong> the national fiscal challengesto states and cities by capping or eliminatingthe tax-exempt status <strong>of</strong> municipalbonds. He also pointed out that 60organizations joined with the Conference<strong>of</strong> Mayors, NLC and NACo in signinga letter that was sent to Senate MajorityLeader Harry Reid (NV) and SenateMinority Leader Mitch McConnell (KY)expressing concern about the municipalbond language in the Senate 2014 budgetproposal and urging them to supportthe continuation <strong>of</strong> the current tax-exemptstatus <strong>of</strong> municipal bonds. After hearingabout the organizations letter, Big 7representatives expressed an interest inworking with the 60 organizations andasked Cochran to convene the April 22meeting on behalf <strong>of</strong> the Big 7.During the meeting, there was consensusto work together to protect the taxexemptstatus <strong>of</strong> municipal bonds; findchampions in both houses <strong>of</strong> Congresswho will promote our cause; meet withkey leaders in the Senate and House toeducate them on the impact <strong>of</strong> the 28percent cap and the <strong>full</strong> elimination <strong>of</strong>the tax exemption; use the Begich letterto build support in the Senate and geta similar letter going in the House; urgemembers <strong>of</strong> the House to sign a bipartisanresolution sponsored by RepresentativesLee Terry (NE) and Richard Neal(MA) celebrating the history <strong>of</strong> municipalbonds and the 100-year tax exemptionfor municipal bond interest; work togetherto develop a Washington strategy, agrassroots strategy and a media strategy.usmayors.orgApril 29, 2013 U.S. <strong>MAYOR</strong> Page 11
Change language