AHA, others urge Congress to preserve tax-exempt status of municipal bonds

AHA today urged leaders of the House Ways and Means Committee to reject a proposal in the House Republicans’ tax reform package that would eliminate tax exemption for 501(c)(3) hospital bonds and advance refunding bonds. “AHA urges the committee to drop these two harmful and unwarranted provisions, which we believe will work against the intended purpose of the bill and severely hamper hospitals’ ability to meet the health care needs of the future,” AHA Executive Vice President Tom Nickels said today in a letter to committee leaders. The association also opposed the proposal as part of the Public Finance Network and Municipal Bonds for America, coalitions that represent municipal bond issuers and users. In a letter to the committee, the Public Finance Network said the proposal would “eliminate financing tools utilized by state and local governments, schools, hospitals, airports and special districts and other public sector entities to provide critical investments in infrastructure and save taxpayers money." Municipal Bonds for America similarly urged House and Senate leaders to abandon the proposal.