July 18, 2017
As Congress and the administration continue to work to overhaul the nation’s broken tax code, Senate Finance Committee Chairman Orrin Hatch (R-Utah) today called on tax stakeholders to provide ideas, proposals, and feedback on how to improve the American tax system.
After years of committee hearings, public statements, working groups, and conceptual exercises, Congress is poised to make significant steps toward comprehensive tax reform,” Hatch said in a letter. “Members from both parties have acknowledged the shortcomings of our current tax system and the need for meaningful reforms to encourage economic growth and alleviate many of the burdens imposed on hardworking taxpayers…As we work to achieve those goals, it is essential that Congress has the best possible advice and insight from experts and stakeholders.
NAST has submitted a comment letter to the chairman with the “strong recommendation that Congress maintain the current tax treatment for municipal bonds,” stressing that changes could “inhibit the ability of state and local governments to continue leading in development of and investment in critical infrastructure throughout our country.”
Three quarters of all public infrastructure projects in the United States are built by the states and local governmental entities. Tax-exempt municipal bonds are the primary tool that state and local governments use to finance highways, bridges, transit systems, airports, water and wastewater systems, schools, higher education facilities, and other public infrastructure.
CSPN has submitted a comment letter as well where they strongly encourage him “to consider the importance of post-secondary education to our economy.”
These recommendations include retaining the current federal tax exemption afforded to earnings on 529 accounts and prioritizing tax policies to support saving for college. In addition to adopting current and past legislative initiatives to make saving in a 529 plans even more attractive to moderate income families and remove some of the current disincentives to college savings. These proposals are reflected in legislation introduced by Senators Richard Burr (R-NC) and Bob Casey (D-PA) and in the House of Representatives by Reps. Lynn Jenkins (R-KS) and Ron Kind (D-WI).
Vermont State Treasurer Beth Pearce, NAST’s incoming president, has partnered with Governor Phil Scott to launch a statewide Financial Literacy..