Municipal Bond Forum
Proposals probably have no impact on muni prices
Q
Do you think current muni prices have been effected by proposals out there that would abolish the tax exemption for municipal bonds or apply a 28% cap on the exemption?
A
James A. Klotz responds:
Although it is difficult to know for sure, our feeling is that there is little or no impact on current prices from the threat to tax exemption.
Here’s why.
As we said, we don’t think it’s likely, but if the exemption was capped at 28%, munis would still remain the most viable option for higher-tax bracket fixed-income investors.
In the remote possibility that the tax exemption was completely eliminated, few believe the Constitution would allow it to be enacted retroactively.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.