At the moment, things in DC are calm for munis. However, recent friction regarding budget cuts and politics has us thinking Congress may, once again, question the cost and effectiveness of municipal finance. Given all the budget abuses in DC, focusing on the lost income from tax-exempt financing seems trivial and could cause more long-term harm than good. MainLine will look at the benefits, costs, and alternatives to tax-exempt financing in this month’s review, so Congress can focus on bigger problems.
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