Utah League of Cities and Towns

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Senator Mike Lee (R) – Budget Deliberations

Senator Mike Lee (R)Bio

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In light of the budget deliberations in DC, what do you expect to happen to the municipal bond tax exemption and will you advocate for the exemption?

Lee Response:

While there were some changes to the tax treatment of municipal bonds in President Obama’s budget proposal for fiscal year 2013; the municipal bond exemption enjoys bipartisan support and is less likely than many other tax exemptions to be eliminated during a larger tax reform effort. However, state and local governments as well as investors should remain vigilant, as all tax expenditures are plausibly “on the table” during tax reform.

Senator Lee believes that tax reform that results in simpler, fairer and flatter taxes while broadening the base is key to reinvigorate economic growth. In the process of doing tax reform, each tax expenditure must be looked at both independently and as part of an overall system. The Senator continues to weigh the benefits of this the municipal bond tax exemption, and welcomes your continued input on this issue.

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