Tax reform

The impact of tax reform is on the minds of all participants in the municipal bond market. The Bond Buyer’s Washington Bureau Chief Lynn Hume joins Contributing Editor John Hallacy in breaking down what the House and Senate plans will mean for state and local governments as well as the effect it will have on underwriters and dealers, bond counsel and financial advisors. Hosted by Chip Barnett.

Kansas City, Missouri was banking on private activity bonds for a "significant" role in the airport financing.

While muni advocates may have an opportunity to defend private activity bonds and deductions favorable to the market, both Houses of Congress appear to be aligned on banning advance refundings.

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.

Ennis Rep. Joe Barton is rallying to prevent the GOP's sweeping tax revamp from costing the city of Arlington millions of dollars on its voter-approved plans to finance the new Texas Rangers ballpark.

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.

Issuers of conduit debt would lose their primary purpose if Congress eliminates private activity bonds.

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

Many coastal governments would see budget pressure and diminished tax-raising ability, analysts said.

The elimination of private activity bonds would remove a financing tool that supports many public private partnerships.

While Congress sets its focus on overhauling the nation's tax code, one provision of plans introduced in both the U.S. House and Senate could have unexpected and far-reaching implications for LSU fans.

Tax reform legislation will be front and center this week, snatching the market’s attention as Congress moves ahead with measures that will change the bond marketplace in the near- and long-term. Both the House and Senate are taking up muni proposals that will directly impact issuers, underwriters and bond buyers.

The municipal market will get another healthy dose of issuance in the final full week before Thanksgiving. The calendar is chock full of deals from Illinois, as all issuers look to price bonds before the tax laws change.

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

While some buy side analysts see a supply “nightmare” following the tax reform proposal, others are looking for opportunities to "stock up" on munis.