Question: Suppose you are a high tax bracket taxpayer. How could you take advantage of a situation in which the implicit tax rate on a tax

Suppose you are a high tax bracket taxpayer. How could you take advantage of a situation in which the implicit tax rate on a tax exempt asset is different from the marginal tax rate on income from a fully taxable asset? How would a low tax bracket taxpayer take advantage of this situation? What impediments (both frictions and restrictions) exist to limit your ability to take advantage of this arbitrage possibility?

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