The tax exemption of municipal debt

.

Chapter 2 in State and Local Financial Instruments, 2021, pp 24-38 from Edward Elgar Publishing

Abstract: This chapter covers the tax-exempt feature of municipal securities, a defining characteristic of most securities sold in the municipal securities market. The tax-exempt feature has historically been a source of continuing controversy at the federal level, but is a source of substantial cost savings for subnational governments and their public benefit organizations. The chapter reviews the constitutional, judicial and legislative underpinnings of the tax exemption of municipal debt. It covers the demand for municipal securities, and highlights the market segmentation that results from different state income tax systems. It concludes with a discussion of taxable debt sold in the market, focusing on the use of tax-credit bonds as a federal policy device, and highlights the federalism implications of the Build America Bonds (BABs) program and the Tax Cuts and Jobs Act of 2017.

Keywords: Economics and Finance; Politics and Public Policy (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/9781800370920.00006.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:19966_2

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().