Pete Domenici: “I have noted in recent weeks commentary from some analysts and in some publications that the proposals for treatment of…”

“I have noted in recent weeks commentary from some analysts and in some publications that the proposals for treatment of municipal bond interest in the USA tax plan which I have coauthored with Senator Nunn would possibly, severely penalize participants in the municipal bond market. As I have explicitly stated before, it is not, repeat not, the intention of this Senator that participants in the municipal bond markets--whether investors, issuers, or other people--be penalized by the USA tax concept. In my judgment, the questions raised by analysts about reducing the savings deduction by the amount of tax-exempt income can be resolved when the actual writing of tax reform legislation occurs in the future. It is my intention during those deliberations to make sure that municipal bonds retain a preference. It is important to recognize that if the USA tax plan were to be enacted it would include significant incentives for savings and investment--the unlimited savings allowance--which defers Federal income taxes on any income saved or invested.”