Thank you, Mr. Chairman, for calling this hearing. 

One of the principal ways that State and local governments finance their activities is through the issuance of bonds to the public. 

It is generally agreed that the liquidity crisis and accompanying economic downturn made it more difficult for State and local governments to find buyers for their bonds.  Indeed, in 2008, total issuances of long-term State and local bonds decreased in comparison to those in 2007. 

It’s important that we review this area of the tax law periodically.  It’s especially important now given the state of the economy and in light of the dramatic changes we’ve seen in bond programs with the enactment of last year’s TARP legislation and this year’s stimulus bill.

Thank you again, Mr. Chairman.   I would also like to thank our witnesses for joining us today.  We’re looking forward to your testimony. 

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