SHOOTING OURSELVES IN THE FOOT

The most stable method of raising money for public investment is state and local government borrowing, and the primary vehicle for such borrowing is the tax-exempt municipal bond. The exemption from federal taxes on municipal bonds allows state and local governments to finance their public projects at much lower interest rates than those available to private corporations. In addition, borrowing allows state and local governments to spread the costs of their investments over time, as benefits from the investments accrue. In the 1980s over 74% of the bonding authority requested by state and local government through bond referendums has been approved by voters. In spite of this, however, the federal government over the last decade has taken steps to limit the scope of tax-exempt borrowing. This article discusses some of these actions, then points out some of the more positive signs that have recently been observed.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/2642359
• Corporate Authors:

  Associated General Contractors of America

  2300 Wilson Boulevard, Suite 400
  Arlington, VA  United States  22201
• Authors:
  • Lackritz, M E
• Publication Date: 1989-11

Media Info

• Features: Photos; Tables;
• Pagination: p. 64-65
• Serial:
  • Constructor
  • Volume: 71
  • Issue Number: 11
  • Publisher: Associated General Contractors of America
  • ISSN: 0162-6191

Subject/Index Terms

• TRT Terms: Bonds; Exemption; Federal government; Financing; Infrastructure; Investments; Local government; Taxation; Taxes
• Uncontrolled Terms: Restrictions
• Subject Areas: Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 00490108
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 31 1989 12:00AM