Tax reform

Bond Dealers of America's Brett Bolton and The Bond Buyer's Kyle Glazier discuss the outlook of federal tax legislation, and the impact of tariffs.

"I'm worried about rates," muni market strategist Vikram Rai said during a webinar Thursday.

Muni advocates are watching the SALT cap negotiations closely, as the outcome may be influence if other revenue raisers, like axing the muni tax exemption, come into play.

"As we head into reconciliation and tax negotiations, I'm making it clear: I won't support a bill that doesn't lift the cap," Rep. Mike Lawler said.

The U.S. Congress is considering eliminating the federal tax exemption for municipal bonds, the single most important financing tool for cities and towns across America. If they do, the cost of building and maintaining infrastructure — roads, bridges, schools, water systems, and even broadband networks — will skyrocket.

Senate GOP leaders also aim to make the TCJA tax cuts permanent, which would raise the costs of tax reform unless a new scoring method is adopted.

The Bond Buyer's Caitlin Devitt and Kyle Glazier discuss the outlook for tax and infrastructure legislation.

Municipal market advocates plan to use the data to support the case to Congress for preserving the tax exemption.

As Republicans hash out their promised tax package, the debate over the bill's scoring method carries implications for tax-exempt municipal bonds.

The tax exemption appears to be in realistic danger as House Republicans seek to offset the cost of extending the Trump tax cuts.