Hospitals, Nursing Homes In Mad Dash To Borrow Tax-Free Funds While They Still Can
The borrowing spree is happening as Congress debates whether to do away with long-held tax exemptions on these types of bonds beginning Jan. 1. Meanwhile, lawmakers are mulling what to do about the health law's insurance tax.
The Wall Street Journal:
U.S. Hospitals, Schools Rush To Raise Tax-Free Funds
Hospitals, universities and nursing homes across the U.S. are rushing to borrow money tax-free—while they still can. Last week, borrowers issued more than $4 billion in new so-called private-activity bonds, which allow nonprofits and some for-profit firms to raise money for development projects perceived to have a public benefit. That was triple the amount issued during the same week in 2016, according to a Municipal Market Analytics analysis of Bloomberg data, and one of the highest weekly issuances of the past two years. Prices on private-activity bonds have increased this week alongside other municipal bonds. (Gillers and Evans, 12/7)
Politico:
House Tax Writers Weigh Plan To Suspend Obamacare Insurer Tax
House Republican tax writers are considering delaying Obamacare's health insurance tax for only limited markets next year, leaving out small businesses and possibly private Medicaid plans, according to sources on and off Capitol Hill. They would suspend it for all markets in 2019. Republicans on the Ways and Means Committee are worried that it will be difficult for the small businesses to send prospective savings from delaying the tax back to consumers. Industry sources, however, say it is possible. (Haberkorn, 12/7)
