There has been discussion in the government budget negotiations of eliminating tax exempt bonds.
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Returns on investment could vary from 3% on tax-exempt bonds to 8% for equity partners.
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Interest from tax-exempt bonds will remain free of federal taxes and the Medicare tax on unearned income.
Traditional tax-exempt bonds, by contrast, are more valuable for high-income investors because they reap a larger tax advantage.
The 28-percent subsidy rate is approximately revenue neutral in comparison to the Federal revenue cost from traditional tax-exempt bonds.
Using tax-subsidized borrowing to invest in tax-exempt bonds is a straight tax arbitrage.
But a 501c3 charity can take tax-deductible contributions and raise capital by issuing tax-exempt bonds, two advantages 501c4s don't enjoy.
Golub was incredulous that this provision would apply to interest on tax-exempt bonds, which could become partially taxable under the proposal.
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Ms. Whitney forecast that a few hundred issuers of tax-exempt bonds will default on their bonds over the next several years.
The Administration proposes to create a new permanent AFF Bonds program, which would be an optional alternative to traditional tax-exempt bonds.
In the middle panel David Armstrong describes a low-risk strategy: tax-exempt bonds that, like Treasury Inflation-Protected Securities, give you a return over and above inflation.
This is income from almost all sources (including tax-exempt bonds, for example), reduced by income taxes and by an allowance for subsistence-level living.
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Ironically, Golub completely misunderstands the economics of tax-exempt bonds.
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Eventually, she rose to senior managing director at Bear Stearns, working in municipal finance and helping the Denver International Airport, the New York State Thruway Authority and other public entities to sell tax-exempt bonds.
Paulson wants to see regulatory reform of government-sponsored entities Fannie Mae and Freddie Mac, as well as the enactment of proposed legislation that would allow states to issue tax-exempt bonds for refinancing.
Critics lodge a number of complaints, saying that these plans would increase future budget deficits, hurt the sales of annuities and the cash value of life insurance policies, lessen the attractiveness of tax-exempt bonds and wouldn't actually increase the pool of savings.
If the project performs as the city expects over the 25-year term of the taxable and tax-exempt bonds, the developers will be repaid their principal and earn an interest rate ranging from 6% to 9%, said Rodney Crim, executive director of the St.
Included in the bill are provisions to overhaul the regulation of Freddie Mac, Fannie Mae and the Federal Home Loan Banks, as well as provisions to increase loan limits to veterans, increase various tax credits to home buyers, and increase the issuance of tax-exempt bonds to refinance subprime loans.
If this sounds far-fetched, take note that the scheme is already in place for supposedly tax-exempt municipal bonds.
Tierney has introduced tax reform legislation that would require all tax-exempt municipal bonds to be issued where there would be a direct-pay subsidy of 28% after this year.
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The criminal information to which Hertz pled guilty charged, among other things, that Hertz engaged in fraudulent misconduct in connection with the competitive bidding process for the selection of the firms to provide instruments in which municipal issuers, in accordance with federal tax laws and regulations, temporarily invested the proceeds of tax-exempt municipal bonds.
The announcement came on yesterday, the same day the state began pricing the tax-exempt and taxable bonds.
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Like other savings bonds, I Bonds are exempt from state and local income taxes.
One can only hope that he owns some tax-exempt inflation-indexed bonds, just in case.
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President Barack Obama has proposed limiting or ending the tax-exempt interest on municipal bonds for upper income Americans.
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Among other things, it leaves out tax-exempt interest on municipal bonds, contributions to retirement accounts, and the earnings of those accounts.
The interest on municipal bonds is exempt from income tax on the federal and sometimes state levels, giving them a higher after-tax yield than a corporate or Treasury with the same coupon and maturity.
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