Senate zeroes in on muni tax exemption

Senate zeroes in on muni tax exemption
The tax-exemption provided to investors in U.S. state and local government bonds faces a fresh challenge in Congress, where two senators are pushing a bill that would roll back the subsidy.
JUN 02, 2011
The tax-exemption provided to investors in U.S. state and local government bonds faces a fresh challenge in Congress, where two senators are pushing a bill that would roll back the subsidy. Senators Ron Wyden, a Democrat from Oregon, and Dan Coats, an Indiana Republican, would swap the exemption for a credit as part of a broad package of tax-law changes introduced this week. Wyden proposed similar treatment of municipal bonds last year in a measure that failed to muster support. More recently, leaders of President Barack Obama's deficit-reduction commission also sought to end the exemption on interest earned from the securities, although the panel's recommendations also failed to win sufficient backing to move forward. Stripping municipal bonds of tax-exempt status would push up the cost of borrowing for local governments because investors accept lower returns in exchange for the favored tax treatment. --Bloomberg News--

Latest News

BREAKING: Osaic executives Kristy Britt and Greg Cornick to leave
BREAKING: Osaic executives Kristy Britt and Greg Cornick to leave

The firm's CFO and EVP of Wealth Solutions are the latest executives to exit the broker-dealer.

Estate planning becomes a client retention issue for financial advisors, survey finds
Estate planning becomes a client retention issue for financial advisors, survey finds

Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.

Candidly adds AI agents for Trump Accounts, workplace benefits
Candidly adds AI agents for Trump Accounts, workplace benefits

CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.

BMO adds three advisors in Dallas amid Y'all Street wealth boom
BMO adds three advisors in Dallas amid Y'all Street wealth boom

The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.

UBS moves toward full-service US bank as plans to extend wealth business
UBS moves toward full-service US bank as plans to extend wealth business

Employee accounts, crypto trials and job cuts frame a pivotal year for the Swiss lender.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.