Saturday, January 28, 2023
Hawai'i Free Press

Current Articles | Archives

Thursday, November 3, 2011
Calif. Treasurer: Hidden Clause in Millionaire Tax means Less CIP Money for Rail, Sand Island
By News Release @ 10:43 PM :: 6916 Views :: Energy, Environment, National News, Ethics

Clue: County and State projects such as Rail or the Sand Island sewer plant upgrade are financed through discounted borrowing via tax free bonds. If the bonds are no longer tax free, the cost of borrowing for construction for Rail will increase dramatically. California’s Democrat treasurer, Bill Lockyer explains how this would affect his state. In short millionaire’s tax = less CIP. Maybe somebody should tell the Legislature they won’t have as much CIP to pass out.

Jobs Act Could Crimp Muni Bond Market -California Treasurer

News Release September 16, 2011:

California Treasurer Bill Lockyer cited significant benefits to the state from President Obama's jobs bill but cautioned the bill could have significant detrimental effects on the municipal bond market.

Speaking Friday at The Bond Buyer's California Public Finance Conference in Carlsbad, Lockyer said the bill threatens to significantly raise borrowing costs for municipal bond issuers by eliminating some tax exemptions for interest on those bonds.

"The big nit to pick for me is that particular provision to make it more expensive for state and local governments to do issuance," Lockyer said. "It would change the tax-exempt muni market, and there would, in effect, be no such thing as a fully tax-exempt muni bond for a wealthier American."

As presented to Congress, the act would reduce the tax benefit to wealthier Americans in a 35% tax bracket from municipal bond interest, capping the exemption at a 28% tax bracket rate.

Using various calculations and assumptions, Lockyer said that over time the act could add anywhere from $2.7 billion to $7.7 billion to statewide borrowing costs.

"A big question mark is whether any of this will become law, and I think that's a fair thing to be skeptical about," Lockyer said. "The worry I have is that it opens the door to discussion in Washington about the elimination of tax-exempt bonds altogether." ….

read … News Release

---30---

Related:

Jobs Bill Muni Tax:

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT