FRANKFORT, Ky. (4/18/13) – Kentucky Treasurer Todd Hollenbach is calling on all Kentuckians to contact their congressional representatives and urge them to maintain the current tax-exempt status of municipal bonds.
As a national leader on the issue, Treasurer Hollenbach was one of the first of 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. “It’s an issue that will have long-term ramifications for Kentucky’s budget and our public infrastructure projects.” Hollenbach said.
“State and local governments use municipal bonds as the primary means of financing highways, bridges, transit systems, airports, water and wastewater systems, schools, higher education facilities and many other public projects.” Hollenbach said, “The need in our state to upgrade and maintain our bridges and roads has never been greater. Eliminating or reducing the tax exempt status of these bonds will result in fewer projects, fewer jobs and a continually deteriorating infrastructure.”
According to the NAST, states and localities save an average of 25 to 30 percent on interest costs when using municipal bonds as opposed to taxable bonds.
“With already tightened budgets,” Hollenbach added, “The ability to save billions of dollars on infrastructure financing is essential.” Eliminating the tax exemption will force us to pay higher borrowing costs at best or at worst cause us to curtail or abandon infrastructure projects.”
Information provided by Mark Pfeiffer
Photo provided by SurfKY Graphics
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