Who benefits from the fact that state and municipal bonds are tax-exempt-the buyer of the bond, or
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Who benefits from the fact that state and municipal bonds are tax-exempt-the buyer of the bond, or the municipality that issues them?
a. Assume that there are so many individuals in the top income bracket that all the bonds are purchased by them. What is your answer then?
b. Assume that the government allows wealthy individuals to borrow to buy tax-exempt bonds. How does that aff ect your answer as to who benefits?
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Related Book For
Economics Of The Public Sector
ISBN: 9780393925227
4th Edition
Authors: Joseph E. Stiglitz, Jay K. Rosengard
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