During the 2012 End of the World so-called Fiscal Cliff of our Federal Government there seems to be quite a bit of suggestions from the Obama Administration and President Obama himself about curtailing tax cuts for the wealthy when people of means invest in Municipal Bonds. Does this make sense? Should we be considering this? Can we do something like this during a time when Muni Bonds are sketchy in many places and municipalities are having trouble with their budgets? Let’s talk.
You see, there was an interesting article in the Wall Street Journal on December 12, 2012 titled; “Tax Breaks on Muni Bonds Draw Scrutiny” by John D McKinnon and Andrew Ackerman which noted that some $30 billion in interest earnings from investors of Municipal Bonds are missed by the Federal Government.
However, if we remove this deduction now, then in essence the Federal Government is hurting our communities, … Read More