FRANKFORT, Ky. (June 17, 2013) Kentucky State Treasurer Todd Hollenbach continues his efforts to promote the retention of tax-exempt municipal bonds while the White House and congressional leaders continue to consider eliminating the tax-exempt status of the bonds as a method to reduce the deficit.
“I have contacted each of our senators and representatives this week asking them to support municipal bonds and oppose any proposals that would cap or eliminate the deduction for municipal bond interest.” Hollenbach said Friday. “I reminded them that to lose the tax-exempt status on municipal bonds would place a great financial burden on our already fiscally starved state and local governments.”
The state treasurer wrote to Kentucky’s Congressional delegation asking them to sign on to a “Dear Colleague” letter in support of tax-exempt municipal bonds being circulated on Capitol Hill by Representatives Dutch Ruppersberger (D-MD) and Randy Hultgren (R-IL).
“Tax-exempt municipal bonds have been an essential finance tool for state and local governments since 1913. They remain a primary source of revenue for municipalities to improve roads, schools, and create economic growth,” he added.
Hollenbach was one of the first of 42 state treasurers to sign onto a letter from the National Association of State Treasurers (NAST) to members of the U.S. House Ways and Means Committee urging them to maintain the current tax-exempt status of municipal bonds.