The White House today released the President's FY 2014 budget proposal-and, as expected, it includes a recommendation to cap at 28 percent the value of interest earned on municipal bonds. 

The President's proposal will help set the stage for several months of negotiations between Congress and the Administration to reach agreement on spending bills and possibly, measures to address the deficit, raise tax revenues, and address sequestration.  

To take action, please urge your Member of Congress to cosponsor House Resolution 112 by Reps. Terry (R-NE) and Neal (D-MA).  A letter and more information is available [here]. 

An MBFA statement about the proposal is available [here].

MBFA continues to meet with the Administration and Members of Congress to stress the importance of retaining current tax law pertaining to municipal bonds. We will continue to update you on developments on this issue.  If you need further information on MBFA or issues raised in this update, please contact info@munibondsforamerica.org.