From 1991 (just after Congress had raised taxes) comes what may be the prettiest ad ever created for municipal bond funds. The copy is equally rosy:
"Taxes…You already pay them on your income. Should you have to pay them on your investments as well? Such anxieties dull the joy of having money. Before long life's little pleasures begin to suffer."
If investors suffer from higher taxes next year, will munis bloom? Or could rock-bottom interest rates lead Congress to decide that municipalities and states no longer need a federal tax subsidy?
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1 comment:
The subsidy has caused far more borrowing that was economically wise at the state and local level. It should be terminated..
On the other hand, today's WSJ says that new muni bond issues have dropped to the lowest level in 20 years! Not in CT they haven't.
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