FinServ Republicans defend muni bonds’ tax benefits

Senior Republicans on the House Financial Services Committee are pressing their colleagues not to raise taxes on municipal bonds, laying down a notable marker as the GOP crafts its reconciliation bill.

Financial Services Committee Chair French Hill (R-Ark.) led a letter to House Ways and Means Committee Chair Jason Smith (R-Mo.) asking that he “fully support the tax-exempt status of municipal bonds” and warning that raising taxes on the financing tool could harm local communities.