Las Vegas CBS KXNT – Congress has stirred up a hornet’s nest with the nation’s mayors. Six of the city leaders took the podium at the conclusion of the U.S. Conference of Mayors on Monday to protest any tax reform that would repeal or reduce the tax exemption for municipal bonds.
The message to Washington from a bipartisan group of municipal leaders –“don’t you dare touch our bonds.”
In its search for ways to shrink the deficit, congress is considering changes to the tax-exempt status of municipal bonds. President Obama has said he would support a cap.
The mayors vowed a bipartisan fight to protect the tax-exempt financial instrument, which they described as a staple for city projects. Without the tax exemption, they said the bonds might as well not exist, because investors will shun them.
Las Vegas Mayor Carolyn Goodman summed up the sentiment, telling Washington to tighten its own belt, and leave the cities’ belts alone.