In a new white paper, ‘More Affordable Infrastructure: Tax-Free Municipal Bonds,” published by the StrategyCorp Institute of Public Policy and Economy, author Michael Fenn recommends reconsidering tax-exempt municipal bonds as a financing mechanism for municipal infrastructure.
Fenn provides context on the infrastructure deficit and municipal debt in Canada, explains the benefits of tax-free municipal bonds and why now might be the right time to introduce them, and offers some program considerations. He argues that while exempting municipal bonds from federal and provincial taxation may not be a silver bullet to address the inadequacy of municipal infrastructure financing, it would “make a timely and sustainable contribution”.
The full paper is available here: More Affordable Infrastructure: Tax Free Municipal Bonds
For more information about municipal infrastructure in Ontario, check out our Issue at a Glance on municipal infrastructure.