Texas 2017 - 85th Regular

Texas House Bill HCR82 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	85R12726 BPG-D
2	2	By: Turner H.C.R. No. 82
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5	5	CONCURRENT RESOLUTION
6	6	WHEREAS, Interest on municipal bonds has been excluded from
7	7	taxation since the enactment of the federal income tax in 1913; and
8	8	WHEREAS, Municipal bond tax exemptions provide state and
9	9	local governments with a subsidy to finance crucial infrastructure
10	10	projects; because municipal bonds are tax-exempt, investors are
11	11	willing to accept lower interest payments, thus reducing borrowing
12	12	costs for governments; and
13	13	WHEREAS, Approximately 6 percent of all bonds issued each
14	14	year in the United States are municipal bonds, and in 2016, state
15	15	and local governments issued nearly $424 billion in tax-exempt
16	16	bonds, representing a six-year high and a 12 percent increase over
17	17	2015; governmental bonds typically fund schools, transportation
18	18	infrastructure, utilities, and other improvements, creating jobs
19	19	while improving the quality of life for area residents; and
20	20	WHEREAS, State and local governments make approximately 75
21	21	percent, the overwhelming majority, of our nation's infrastructure
22	22	investments, and many of those investments are financed with
23	23	municipal bonds; and
24	24	WHEREAS, The tax exemption for municipal bonds allows the
25	25	federal government to support infrastructure investment in a manner
26	26	that minimizes federal bureaucracy and maximizes community
27	27	decision making; and
28	28	WHEREAS, Over the years, the municipal bond market has
29	29	offered greater predictability than most, and it holds tremendous
30	30	appeal for individual investors, especially those of retirement
31	31	age; municipal bonds are owned disproportionately by households,
32	32	rather than by banks and other financial institutions, and a
33	33	Brookings Institution study found that the average age of municipal
34	34	bondholders was 62; and
35	35	WHEREAS, If the tax exemption for municipal bonds were to be
36	36	repealed, state and local governments would have to offer higher
37	37	returns to continue to attract investors, and taxpayers would pay
38	38	more for important infrastructure projects; increased debt service
39	39	costs would result in fewer such projects in an era in which the
40	40	safety and competitiveness of the nation's infrastructure gives
41	41	cause for tremendous concern; and
42	42	WHEREAS, For more than a century, the highly efficient
43	43	municipal bond market has helped to spur vital infrastructure
44	44	investment and associated job creation, and eliminating the federal
45	45	tax exemption would jeopardize these low-risk investment
46	46	opportunities; now, therefore, be it
47	47	RESOLVED, That the 85th Legislature of the State of Texas
48	48	hereby respectfully urge the United States Congress to retain the
49	49	tax exemption for municipal bonds; and, be it further
50	50	RESOLVED, That the Texas secretary of state forward official
51	51	copies of this resolution to the president of the United States, to
52	52	the president of the Senate and the speaker of the House of
53	53	Representatives of the United States Congress, and to all the
54	54	members of the Texas delegation to Congress with the request that
55	55	this resolution be entered in the Congressional Record as a
56	56	memorial to the Congress of the United States of America.