Federal Tax Policy and Infrastructure Financing

摘要

The report examines the impact of federal government actions on the financing of state and local infrastructure construction. Composed of four sections, the report essentially has three conclusions. Federal assistance programs can positively promote state actions in an efficient manner. The Tax Reform Act of 1986 was to a large extent successful in its Congressional goal of eliminating many 'private purpose' bond and limiting tax-exempt status only to traditional governmental activities. Municipal issuers and their advisors have developed several innovative financing systems to assist in funding local infrastructure in light of increasing total needs and changes in federal tax policy.