The American Hospital Association and 53 other organizations have asked Congress to keep the federal tax exemption on municipal bond interest.
The Senate Finance Committee is currently in the process of developing a proposal to reform the U.S. tax code and is considering several proposals that would replace, limit or eliminate the tax exempt status of municipal bonds. Witnesses at committee hearings have raised concerns that although tax-exempt bonds are intended to reduce the borrowing cost to state and local governments, about 20 percent of the tax subsidy doesn't accrue to the state and local government by lowering their borrowing costs.
American citizens and communities benefit from municipal bonds being tax exempt, partly because of the role those bonds play in building hospitals and clinics, the coalition of organizations wrote in a letter to Congress.
Last week, the AHA also urged legislators looking to reform the tax code not to eliminate hospitals' ability to obtain tax-exempt financing and to accept tax-deductible charitable contributions.
More Articles on Hospital Finances:
AHA Urges Congress to Retain Hospital Services Tax Exemption
What Are the Biggest Issues Impacting Hospital CFOs Today? 10 Industry Experts Explain
4 Considerations for Hospital Bundled Payment Programs