Could a bipartisan bill introduced Tuesday really put the muni-bond tax exemption out to pasture?

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Tom Au Comments (6708)
 
That might be unconstitutional.
7 Apr 2011, 12:23 PM Reply Like

Duude Comments (3274)
 
Its not unconstitutional for the government to deny federal tax free status for all future muni bond offerings. Its not a constitutional issue in any way. States can then begin taxing US treasuries again which is their prerogative. Ultimately, this is probably a good idea. States have overused muni bonds to the point of using them to build sports stadiums and balance their budgets. Enough is enough. States are as reckless as the Federal government.
7 Apr 2011, 12:36 PM Reply Like

kmi Comments (3844)
 
Agreed; the tax exemption was just a mechanism to make them more attractive to investors. Now munis are abused as a means to buffer or increase gov't spending power and I doubt most of the electorate honestly agrees with that.
7 Apr 2011, 02:02 PM Reply Like