Everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on Treasury securities when A. income tax rates are lowered; B. income tax rates are raised; C. municipal bonds become more widely traded; D. corporate bonds become riskier; ...
Interest earned on municipal bonds is one of the most common tax-exempt incomes. Municipal bonds are the bonds issued by states to arrange capital for special projects and ventures such as the construction of schools, bridges, etc. The interest income earned by an investor from the municipal bo...
What makes them unique: Municipal bonds generally fall into one of two categories—general obligation (GO) bonds or revenue bonds. Interest earned on the majority of munis is exempt from federal income tax and may be exempt from state and local taxes if you live in the issuing state. Because...
The interest income earned from most municipal bonds is exempt from all federal income taxes regardless of your tax bracket. This is the most significant benefit of municipal bonds and it is a characteristic unique to municipal bonds. Not even US Treasuries offer income that is free from federal...
A. the interest rate on municipal bonds minus the interest rate on treasury bonds. B. the interest rate on treasury bonds minus the interest rate on default-free bonds C. the interest rate on corporate bonds minus the interest rate on treasury bonds. D. the interest rate on treasury bonds...
The emissions of municipal bonds are a pretty recent apparition in the evolution of the Romanian capital market. The reduced level of the local administrations available funds and the impossibility to increase the local taxes so as to get higher incomes cashed by the local budgets, impose the ...
You must pay income tax on any interest you earn, during the year you earn it, unless it’s on municipal bonds, non-Roth 401(k)s, health savings accounts, or traditional individual retirement accounts (IRAs). If you don’t claim your interest income on your tax return, you may be at...
aThe conclusion that "a nondiscriminatory tax on the interest paid on [municipal] bonds undoubtedly would be upheld as constitutional today,"3 is like a rifle shot to the heart of those pursuing a current Supreme Court decision on the matter, and is only mildly offset by the characterization ...
Interest earned on certain types of municipal bonds, such as bonds issued by state and local governments Interest earned on certain U.S. savings bonds, such as Series EE and Series I bonds, is exempt from state and local income taxes. Government bonds such as Series HH bonds and Treasury I...
a California resident who buys a New York municipal bond would pay California income tax on that interest.4 These tax laws, however, vary by state. For instance, some states such as Wisconsin and Illinois tax interest earned on most muni bonds, including their own,56 while states...