In 2013, President Obama increased tax by essentially repealing the Bush tax cuts for high-income tax payers. How does this affect the after-tax expected return on tax-free municipal bonds relative to Treasury bonds?

In 2013, President Obama increased tax by essentially repealing the Bush tax cuts for high-income tax payers. How does this affect the after-tax expected return on tax-free municipal bonds relative to Treasury bonds?



Answer: Raising taxes will reduce the interest rate needed to make munis more attractive than Treasuries


Learn More :