Price Defends Tax-Exemption

A Republican on the U.S. House’s taxwriting committee said his party is hesitant to curtail the tax exemption for investors in the municipal market, which has been a concern among bond buyers.

Debt sold by states and cities generates economic growth and its tax-free status should be preserved, Georgia Representative Tom Price said yesterday at a Securities Industry and Financial Markets Association conference in Manhattan.

Price is a member of the House Ways and Means Committee and chairman of the Republican Policy Committee.

“From our standpoint, we are loath to try to harm things that actually generate productivity in the economy, and we believe that taxexempt municipal bonds actually generate activity out in the real world,’’ Price said. “I would urge you not to capitulate with a pre-emptive surrender on this.’’

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