- Joined
- Aug 9, 2010
- Location
- Coral Springs, Florida
There is a proposal circulating in Congress to do away with the tax exemption for interest paid on municipal bonds. This has been the foundation of financing for state and local governments for decades. The proposal plans to give some type of credit for the interest paid (i.e 25% of the interest paid or something similar). This will make municipal bonds less attractive and will probably cause the interest rates to rise on new bonds that are issued. Not entirely sure how I feel about this one way or the other but figured I'd post this up here in case anyone holds any of these bonds.
It sounds like they would grandfather in any bonds issued prior to 2011. This isn't a done deal yet and may never happen but keep your eyes open if you hold any of these.
It sounds like they would grandfather in any bonds issued prior to 2011. This isn't a done deal yet and may never happen but keep your eyes open if you hold any of these.