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Your Interests Come First

On April 25, 2012, the U.S.  Senate Committee on Finance held a hearing and listened to testimony on the day’s topic—“Tax Reform: What It Means for State and Local Tax and Fiscal Policy.”

The muni investment team in Rochester believes that the testimony presented to the Committee was less focused on the fundamental importance of the municipal bond market than it should have been.  Millions of investors and thousands of issuers (not to mention the U.S. economy as a whole) benefit from municipal financing and the tax exemption on municipal investment income.  

We recognized an opportunity – and a responsibility – to widen the discussion and, to that end, OppenheimerFunds/Rochester submitted a statement to the Congressional Hearing Record.  

In this statement, we encourage the Committee members and their colleagues to consider the negative and unintended consequences that would develop were Congress to alter the tax status of municipal bonds. (Rest assured: we continue to believe it highly unlikely that Congress will eliminate the tax exemption on muni income.)

We also present details about our unequivocal belief that the long-standing rules regarding the tax-exempt status of municipal investment income must be maintained.  A change, we believe, could adversely affect individual investors, state and local issuers, countless communities and our economy.

We will continue to monitor the situation closely and, as always, act in our investors’ best interests.       


Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

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