dmnieren

Muni Bonds: Constructive in Current Portfolio Asset Allocation

I hate to play political angles when investing, but my bet would be on no changes to the tax structure...why?

1) It would kill cities and states that issue large amounts of munis.
2) These cities and states tend to vote Democratic (see: CA, NY, MA, IL)
3) Next admin, and certainly Congress is likely to be Democratic.

As always, the Democrats might state they want to "target" the rich, but what they really mean is that they want to "target" their political adversaries, meaning "rich" businessmen/workers, not largely Democratic states with bloated budgets & high state taxes that are partly subsidized by the tax breaks on munis and the state income tax deduction. Not being partisan, just reading what actually happens (like last time they ran the gov't--taxes were raised down to couples making $40K or whatever it was, but there was no touching of the muni exemption, homeowners subsidy, etc)