Power Lines Blog

Taxing muni bonds: Excuses and more excuses

taxing-muni-bonds

We’ve been fighting for several years now to explain the reasons why an unprecedented tax on municipal bonds would be bad. What we’ve spent less time discussing are the excuses – implicit and explicit – for imposing a new tax on municipal bonds. These include dire warnings of tidal waves of municipal bankruptcies, breathless tales of state and local financial struggles, hoary anecdotes implying endless abuses, and pat solutions that fail to address the problems.

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