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Originally Posted by NJblue
The concept of tax free bonds goes way beyond this and probably amounts to many billions or trillions of dollars around the country. Sure, the net recipient of these dollars are the developers who build the public swimming pools, airports, parks, etc. However, the PRIMARY beneficiaries of the tax free nature of these bonds is the general public who pay them off - whether it be in the form of property taxes in most municipalities or, in our case, the amenity fees. So, if Congress wants to eliminate the tax advantage of these bonds, it will be the general public (who they are supposed to represent) that would be hurt the most. Yes, the developers will also be hurt to a limited extent because some worthwhile projects won't be done because the cost to pay for them will go up as a result of the higher cost of debt ... but it is the public that will have to do without that park or airport or bridge.
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None of the things you mention are for-profit businesses, such as public swimming pools, airports, parks, bridges. Isn't that the difference between tax-free or taxable bonds, one is for non-profit and the other is for for-profit?