Muni Advocates Responding to Threat to Tax-Exempt Status.

Municipal market advocates are responding to the threat of eliminating the tax-exempt status of municipal bonds through various strategies, including Capitol Hill visits and a letter to Congress from the Government Finance Officers Association. The potential elimination of the tax exemption could lead to increased borrowing costs and higher taxes for American households. Advocates are emphasizing the importance of the tax-exempt status for municipal bonds, highlighting the benefits it provides to communities and retirees. The debate surrounding this issue is complex and involves considerations of budget reconciliation targets, savings projections, and the impact on various stakeholders. [Extracted from the article]