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FBN’s Jeff Flock with Carmel, Ind., Mayor James Brainard on the potential of new municipal bond taxes raising borrowing costs for cities.
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Reduction in tax breaks and loopholes could soon start to take -- hole in your -- Jeff Flock to -- us now from Carmel Indiana Jeff.
DA here that guys listen.
That's the sound of water flowing through the new thirty million dollar water plant -- horrible.
-- Indiana financed by the way with tax free municipal bonds tax free bonds helped wealthy people right mr.
mayor.
Why don't we try to -- the well.
-- people well there's a lot of unintended consequences when people started out to do that.
And one of the big and to the consequences in the case of this plant would have been to any construction workers when the Fed jobs that tax revenue from their salaries would have gone to the federal government.
And this water plant -- have been built and there might not have been a lot of building in this general area because we couldn't provide water.
You rely on the tax free nature of municipal bonds -- that and let's face it folks.
They do tend to help wealthy people out because wealthy people have tax.
Issues so they do hit the him helped the wealthy in both Republicans and Democrats have said maybe we need to close some of these loopholes -- -- -- say.
Well it's simply.
Putting the tax burden back on local taxpayers.
It's suppose like creating revenue for the federal government but it's gonna take -- it's gonna cost global taxpayers and cities -- tend to build a hospital university.
Or -- road more money burden shifting would take.
-- -- the one thing and I -- -- play devil's advocate one more time with yet look at cost of borrowing.
Right now cost -- -- for municipalities like yours is an all time low.
-- -- -- suck it up a little -- what's wrong with that.
Right now but these are long term bonds -- cities usually issue for projects like this and we know that.
Everything goes up and down leaves little term rate -- these low rates aren't going to be low forever.
I think everybody understands that the mayor of Carmel Indiana I would point out guys.
Even a President Obama has put this idea -- word.
The notion of eliminating or at least reducing the tax free nature municipal bonds a lot of democratic mayors and folks like this man all across the country say.
Bad idea.
All right thank you very much Jeff Flock.
