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Municipalities taking a stand against federal tax exemption change

Marshfield Mayor Chris Meyer
Marshfield Mayor Chris Meyer

MARSHFIELD, WI (WSAU) - A federal government plan to eliminate municipal bond tax exemptions is being met with resistance. Marshfield’s City Council unanimously passed a resolution Tuesday night opposing the concept.

Marshfield Mayor Chris Meyer says removing that tax exemption would hurt cities that are already financially strained. According to Meyer, “We could raise taxes to pay for those additional interest charges, but I don’t think this Common Council is really excited about doing that. And likewise with the utility that would be covered by simply raising rates.”

Some of the officials at the Federal level who want to see that tax exemption removed include President Obama, and Speaker of the House John Boehner.