Some optimism is coming out of Washington DC that House Budget Chairman Paul Ryan (R-WI) and Senate Budget Chairwoman Patty Murray (D-WA) are making progress on talks to negotiate federal budget changes before their self-imposed December 13th deadline. If nothing changes, a new set of sequestration cuts to the tune of $91 billion will go into effect in early January 2014. As of right now there are no indications that eliminating the exemption on municipal bonds will be part of this budget/tax reform package being discussed. However, nothing is certain, so we will continue to monitor that issue closely.

Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org