WASHINGTON (Reuters) – Weeks before lawmakers unveil a proposed overhaul of the U.S. tax code, investors and firms tied to the municipal bond market are trying to head off their worst fear – caps or cuts to the tax exemption for interest on debt sold by cities, states and other government bodies.
Traders, issuers and investors say they may have to fight a two-front battle as the exemption could also be targeted during congressional negotiations expected next month on the federal debt ceiling.
By Lisa Lambert
(Reuters) – Moody’s Investors Service on Tuesday revised its outlook for U.S. states to stable from negative, marking a significant improvement in its assessment of state finances after cutting its outlook for the sector more than five years ago.
The rating agency said that the uncertainty surrounding federal budget cuts has diminished, revenue growth for many states has exceeded expectations, and budget reserves are continuing to grow.
Aug 20 (Reuters) – Moody’s Investors Service on Tuesday
revised its outlook for U.S. states to stable from negative,
marking a significant improvement in its assessment of state
finances after cutting its outlook for the sector more than five
The rating agency said that the uncertainty surrounding
federal budget cuts has diminished, revenue growth for many
states has exceeded expectations, and budget reserves are
continuing to grow.
WASHINGTON (Reuters) – A growing bipartisan chorus of U.S. lawmakers said on Sunday that the United States should suspend its $1.5 billion in military and economic aid to Egypt following a violent crackdown on protesters that has left nearly 800 dead.
Senator John McCain, a top Republican on the Senate Armed Services Committee, said he now supported suspending the aid, even though he initially believed it should be continued after the Egyptian military removed democratically elected President Mohamed Mursi from office last month.
WASHINGTON, Aug 8 (Reuters) – Detroit’s filing for the
largest municipal bankruptcy in U.S. history has cost the
municipal bond market $13.8 billion in the last three weeks, S&P
Dow Jones Indices said in a research note on Thursday.
The S&P Municipal Bond Index, a major benchmark tracking
over $1.4 trillion in bonds, has returned a negative 0.97
percent since the filing on July 18, as bond prices have fallen
and yields have risen, said J.R. Rieger, the company’s vice
president of fixed income indices.
WASHINGTON, July 25 (Reuters) – Republicans in the U.S.
Senate want to make sure the federal government does not become
involved in the financial maelstrom hitting Detroit, which filed
for the largest municipal bankruptcy in U.S. history last week.
They have proposed at least three “No Bailout” amendments to
spending bills that the Senate is currently considering, all of
which would limit the U.S. government’s ability to help cities
in fiscal crisis.
WASHINGTON (Reuters) – Legislation to allow U.S. states to collect sales taxes on purchases made online is garnering support from both sides of the political spectrum, with a leading conservative economist saying on Thursday the tax would foster growth and job creation.
Arthur Laffer, a former chief economist at the White House Office of Management and Budget best known for the “Laffer Curve” relating tax rates and revenues, released a study estimating states will lose out on annual revenues of between $27 billion and $33 billion by 2022 without Internet sales taxes.
WASHINGTON (Reuters) – The ability of U.S. public pensions to cover their liabilities weakened again, although the deterioration is slowing, two major rating agencies said on Tuesday.
Both Fitch Ratings and Standard & Poor’s Ratings Service added that they expect improvements in pension finances in the near future.
WASHINGTON (Reuters) – A top Republican senator unveiled legislation on Tuesday that would radically change public pensions by having life insurance companies pay benefits through annuity contracts, helping to alleviate the underfunding that has engulfed many plans.
The bill introduced by Utah Senator Orrin Hatch, the highest-ranking Republican on the Finance Committee, would have the government pay a premium each year to a state-licensed insurer in an amount equal to a set percentage of salary. Employees would then receive fixed income annuity contracts from the insurance company.
WASHINGTON, June 27 (Reuters) – The assets held by U.S.
public pension plans have surpassed their pre-recession peaks to
reach record highs, but investment returns for the state and
local retirement systems have slowed from even a year ago even
as benefit costs rise.
For the 100 largest public-employee retirement systems, cash
and security holdings totaled $2.93 trillion in the first
quarter, the highest on records going back to 1968, according to
a U.S. Census report released on Thursday. The previous peak was
just before the financial crisis in the fourth quarter of 2007,