SALT deduction

Municipals stronger ahead of this week's summer supply slate as Congress debates a potential fiscal stimulus package.

GFOA will be launching a new online learning-management system by the end of the year to connect its members.

The Institute on Taxation and Economic Policy in Washington as well as Americans United for Separation of Church and State are objecting to that aspect of the proposed IRS regulation.

Another round of tax legislation is not expected to emerge until the very end of the year after the presidential election or in 2021 after a new Congress is sworn in.

The legislation, which would make tax-exempt municipal bonds more attractive for high-income income retail customers, has no chance of becoming law.

The additional revenue from permanently increasing the top individual tax rate to 39.6% from the current 37% would help pay for a temporary two-year suspension of the SALT cap.

The $10,000 limit on the SALT deduction caused an estimated 10.88 million individual taxpayers to lose $323.1 billion in tax deductions for the 2018 tax year.

Richard Taormina, head of Tax Aware Strategies at JPMorgan Asset Management, talks about the value of municipal bonds and focuses on performance, foreign demand and the effect of the tax reform legislation on the market. Chip Barnett hosts this podcast, which was recorded in early October.

Kenneth Potts, senior vice president and portfolio manager at Fiera Capital, checks in on the state of the municipal bond market. He talks about the effect of the SALT deduction on high-tax states and supply and demand factors in this podcast recorded in September. Chip Barnett hosts.

The first opportunity for repeal of the SALT cap prior to its December 2025 sunset date would be in early 2021 if Democrats can gain majority control of both chambers of Congress as well as the White House in the November 2020 election.