Camp Tax Reform ‘Discussion Draft’ Launches Dialogue; Feedback Will be Key - Micah Green

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    Recognizing that a recently-release ‘Discussion Draft’ on tax reform would definitely prompt dialogue, DC Partner Micah Green warned that without feedback, its provisions may be viewed as viable. In a February 26, 2014 Bond Buyer article, Mr. Green discusses House Ways and Means Committee chairman Dave Camp's (R-MI) draft tax reform plan. A proposal to prohibit new PABs and advance refundings from being issued as tax exempt was not well received by some market participants. Mr. Green noted doing away with tax exemption for new advance refundings could dramatically change market practices. "If issuers can't do advance refundings, they're much more exposed to market interest rate movements," he pointed out. They may have to structure bonds with earlier call dates, which investors may not want, or they have to address interest rate risk by increasing activity in derivatives market, Mr. Green added.

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