Texas House Bill HCR82

Texas 2017 - 85th Regular

Caption

Urging Congress to retain the tax exemption for municipal bonds.

Impact

The bill emphasizes that municipal bonds represent a significant portion of the total bond market, accounting for approximately 6% of all bonds issued annually. With state and local governments relying heavily on these tax-exempt bonds, the repeal of this exemption could dramatically increase borrowing costs, leading to fewer infrastructure projects being funded and potentially higher taxation to cover service increases. The tax exemption is particularly beneficial for local governments as it allows them to pursue infrastructure improvements with lower financial burdens.

Summary

HCR82 urges the United States Congress to maintain the tax exemption for municipal bonds, which has been in place since the federal income tax was established in 1913. The resolution highlights the vital role municipal bonds play in financing essential infrastructure projects across the nation. By allowing tax-free interest on these bonds, state and local governments can secure lower interest rates from investors, thereby reducing costs associated with borrowing and enabling increased investment in public goods such as schools and transportation infrastructure.

Sentiment

The sentiment surrounding HCR82 appears to be overwhelmingly positive among legislators who view the preservation of the tax exemption as essential for continued investment in infrastructure and local government initiatives. The mention of job creation linked to infrastructure development adds to the bill's appeal, especially in discussions about community improvement and economic growth. The resolution positions the tax exemption as vital for public finance and local decision-making, potentially garnering bipartisan support.

Contention

Potential points of contention regarding HCR82 could arise from differing views on the necessity and efficacy of the federal tax exemption policy for municipal bonds. While proponents argue for its critical role in reducing local government costs and supporting necessary infrastructure projects, opponents may question the sustainability of such tax policies, especially in light of broader federal tax reforms. However, no significant opposition was noted in the available discussions around this resolution.