Municipal bonds, aka munis, are the main type of tax-exempt bonds.
Munis are issued by states, counties, cities, and other government agencies to fund major capital projects, such as building schools, hospitals, highways, and other public buildings.
Interest income from muni bonds is generally not subject to federal income taxes. It can also be exempt from state or local income taxes if your home state or city issues the bond. Interest income from muni bonds issued by another state or city is taxable on your state or local income tax return.
Fast fact: Muni bonds exempt from federal, state, and local taxes are known as triple tax exempt.
negotiations as i did with that quote before in the administration. the amt san odd thing you have to calculate your taxes twice, pay whichever is higher. if you go back i really liked your graphic going back to, what, 1970 when introduced. there was i think a story goes there was a time magazine or other story about some little old lady who was a millionaire paid no taxes. that was really where the whole debate started. at least at tax conferences i ve heard that said. haven t in fact checked it. no one s found the little old lady, but that s the point. think how that happens. what s going on is we pass laws that say municipal bond interest is not taxable. so then somebody might say, oh, i really like the idea not paying taxes. load up on muni bonds but it s a lawful thing. worried someone could avoid paying tax because of lots of interest income from mini bonds, change the treatment of muni bonds, right? don t necessarily have to have another tax system everybody has to cal
you re suggesting people invest in puerto rico no, high quality muni bonds. if to bet and roll the dice a little bit, get the good yield, make a bet on whether puerto rico defaults or not. but the stock market this year will be a bet i don t think you should be getting into. we ve corrected 7% since january. that s not quite a correction. a correction is 10%. i think we have another 3 to go. yesterday the stocks were up 38. but when you look year to date. . 7% correction. a correction in technical termination is 10%. so you think another 3%. then there is a lot of head wind with this economy. tomorrow is monthly jobless numbers. today is a trading point. tomorrow is a bigger number. you got obamacare, taxes. that stuff hurts the economy at some point. the problem with investors, looking at their 401(k), right now they re getting tax
market given that last year was really good, plus the feds trying to fix that crazy qe thing. the printing of money, which is bad, negative for stocks. last year, particularly the end of last year was amazing. off the charts. a lot of people say we had all our gains for this year accumulated at the end of last year. so now what the optimistic people are talking about, talk about financial advisors that aren t talking their book. people that are saying to their investors, optimistically, last stock market this year. so look for other ways. put in high dividend stocks. people at stocks don t like municipal bonds, but they re a really good investment. you can find high quality muni bonds. if you re really looking to roll the dice, i m telling you this, you bet whether or not puerto rico will default. you buy one, it s a bet. general obligation bond, you get a 10% tax free yield on that.
they are looking at their books more closely. it also means it may be tougher and more expensive for your city to borrow money. those muni bonds. they may either spend down their slowing or raise your taxes as a result. will we see now when you look at the number of towns and cities across america who could be in a similar predicament. now, detroit is way over i mean, 18 billion to 20 billion in debt. should those people living in those other communities be worried about their town or their city and their financial viability? this is a big deal. it is a test case and there are cities and towns and municipalities everywhere watching this, but you have to remember, like you said, what a special case detroit is. i mean, 40% of the street lights aren t working. they have shut down half of their parks. they are really in dire straits. they cannot pay their bills. but there are a lot of other cities and towns and communities across the country where they have unfunded pensions and