WASHINGTON, D.C. - Ways and Means Select Revenue Measures Subcommittee Chairman Richard E. Neal (D-MA), issued the following opening statement at a Subcommittee hearing on tax-exempt and taxable governmental bonds:
“Today, the Subcommittee will consider federal tax incentives for state and local financing needs. As a former mayor of a mid-sized city, I personally know the value of tax-exempt financing for community needs. Our federal government has long recognized the important role cities play in our civilized society.
“Lyndon Johnson put it this way, “The American city should be a collection of communities where every member has a right to belong… It should be a place where each of us can find the satisfaction and warmth which comes from being a member of the community of man. This is what man sought at the dawn of civilization. It is what we seek today."
“The economic downturn has been felt at every level of government, but especially by our cities. The Ways and Means Committee heard from governors and mayors at a hearing last October and responded with a stimulus package including a number of expansions and improvements for state and local borrowing. Today, we welcome a number of experts to tell us how these bond programs are working and what remains to be done.
“One of my proudest moments as Mayor of Springfield was the largest development ever in Western Massachusetts, known as Monarch Place. As those of you involved in local government know, you scrape together every dollar you can find for these projects from more sources than you care to count. And the heart of these deals is always municipal bonds.
“Monarch Place spurred a revival of downtown Springfield and more bonds were then used for housing and a local theater. It really is a perfect example of how bonds can rebuild a community.
“From roads, bridges, and energy projects, our witnesses will tell us today that Congress is on the right track with some new and innovative ways for local governments to build the kind of community Lyndon Johnson was talking about."
