Washington DC

The House approved its version of tax reform by a vote of 227-205.

Even though tax bills would have a PAYGO problem, Republicans may have the upper hand.

Senate Majority Whip John Cornyn told The Bond Buyer he will fight to keep PABs in the final tax reform bill when the Senate and House Republicans negotiate their differences next month.

U.S. Sen. Elizabeth Warren and Rep. Nydia Velázquez called for the Oversight Board to eliminate all of Puerto Rico’s public sector debt.

It may take 60 votes in the Senate to decide if the tax bill is subject to the PAYGO Act.

Smaller not-for-profit hospitals and systems lack the access to taxable debt markets enjoyed by bigger systems.

Without tax-exempt private activity bonds, charters would have to turn to more expensive and restrictive capital sources.

Repeal of the health mandate would increase healthcare costs for state and local governments.

If Congress passes the pending tax bills, BABs and more than $85B of mandatory federal programs would be jeopardized.

At least 355 potential tax reform amendments were filed with the Senate Finance Committee on Monday.

The SEC's Office of Compliance Inspections and Examinations found municipal advisors had trouble meeting registration, books and records and supervisory requirements.

The 20% corporate tax rate also would have an adverse impact on the muni market.

The muni market would fare better in the Senate Republicans' tax reform proposal, which would preserve private activity bonds and enhance them through the repeal of the alternative minimum tax. However, advance refundings and the SALT deduction would be terminated, a "one-two punch" for state and local governments.

Tax-exempt student loan bonds have saved families $815M over the last 20 years.

Senate Finance Commitee chairman Orrin Hatch's tax proposal will likely be kinder to municipal bonds than the House's bill, but harder on states and localities.

Some House Republicans pledged to work with Democrats to save PABs, advance refundings in tax reform legislation.

House Ways and Means Committee Republicans rejected an effort to keep the full deduction for state and local taxes.

The House GOP bill, if passed, would lower feasibility of P3s, Fitch said.

“We have to get an energy grid up there that will survive the test of time,” Rep. Rob Bishop, R-Utah, said about Puerto Rico.

Advance refundings were 27% of market last year, PABs were 19% and most were 501(c)(3)s.