Jim McIntire, Washington state treasurer and president of the National Association of State Treasurers (NAST), spoke with The Bond Buyer on the active role he believes that the federal government should play in securing infrastructure funding and protecting the tax-exempt status of bonds. This comes in the wake President Obama's proposed $4.1 trillion 2017 budget that would tax the value of tax exemption at 28%.
The municipal bonds market, needed now to pay for America's lagging infrastructure, has been affected by stress on state and local budget revenues. Removing tax-exempt status from these municipal bonds would have a serious effect according to NAST senior vice president and Oklahoma state treasurer Ken Miller:
"Municipal bonds have long been a vital source of funding for states, cities and counties to pay for essential infrastructure needs," Miller wrote. "Removing the tax-exempt status of these bonds for select taxpayers would cause a devastating ripple effect."