federal income tax exemption - escape from progressivity for the rich??
Why is it argued that the federal income tax exemption of interest on state-local debt is an escape from progressivity for the rich? Please explain the arguements for and against this critisism.
Tax exemption on municipal bonds - If the income tax exemption on municipal bonds were abolished, what would happen to the interest rates on these bonds? What effect would it have on rates on U.S. Treasury securities?