[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 112 Introduced in House (IH)]

113th CONGRESS
  1st Session
H. RES. 112

 Celebrating the history of municipal bonds, the 100-year precedent of 
    the Federal tax exemption for municipal bond interest, and the 
important contribution municipal bonds have made to economic growth and 
     wellbeing in each State and municipality in our great Nation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 2013

     Mr. Terry (for himself and Mr. Neal) submitted the following 
   resolution; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                               RESOLUTION


 
 Celebrating the history of municipal bonds, the 100-year precedent of 
    the Federal tax exemption for municipal bond interest, and the 
important contribution municipal bonds have made to economic growth and 
     wellbeing in each State and municipality in our great Nation.

Whereas in the 200 years since the first recorded municipal bond was issued by 
        the City of New York to build a canal, municipal bonds have helped build 
        a strong economy and provide for the health and welfare of our 
        citizenry;
Whereas three-quarters of all infrastructure investments made in the United 
        States are financed by municipal bonds;
Whereas municipal bonds finance infrastructure projects that touch the daily 
        lives of every American citizen and business--roads we drive on, schools 
        and education for our children, affordable family housing, water systems 
        that supply safe drinking water, courthouses, hospitals and clinics to 
        treat the sick, airports and ports that help move products domestically 
        and overseas, and utility plants that power our homes, businesses, and 
        factories;
Whereas interest on municipal bonds is exempt from Federal taxation as part of 
        the principle of reciprocal immunity under which the Federal Government 
        is exempt from State and local taxation and State and local governments 
        are exempt from Federal taxation;
Whereas the Federal Revenue Act of 1913 codified this principle as part of the 
        Federal income tax by exempting from income tax the interest on 
        municipal bonds;
Whereas exempting municipal bond interest from Federal taxation reduces the cost 
        of infrastructure financing by State and local governments;
Whereas reduced infrastructure costs for State and local governments allow for 
        greater infrastructure investments and savings passed directly to 
        taxpayers and ratepayers in the form of reduced taxes and fees;
Whereas, because of critical infrastructure needs, it is estimated that in 2013, 
        $300 billion of municipal bonds will be issued;
Whereas keeping infrastructure costs low is critical for job creation and 
        rebuilding infrastructure is crucial to our Nation's State and local 
        economies, including power generation, distribution, and transmission;
Whereas the ability of municipal bonds and the 100-year precedent of the Federal 
        income tax exemption for municipal bonds provides State and local 
        governments timely access to cost-effective capital; and
Whereas the Federal tax exemption for municipal bond interest is a cost-
        effective financing vehicle available to State and local governments: 
        Now, therefore, be it
    Resolved, That the House of Representatives--
            (1) celebrates the history of municipal bonds;
            (2) celebrates the 100-year precedent of the Federal tax 
        exemption for municipal bond interest; and
            (3) celebrates the important contribution municipal bonds 
        have made to the economic growth and wellbeing in each State 
        and municipality in our great Nation.
                                 <all>