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Commentary: I'm From the Federal Government and I'm Here to Help You

JUN 20, 2013 4:37pm ET

If municipal issuers have not come out of the woodwork yet in favor of the tax exemption, this should just about do it. Federal trustworthiness now is in shambles regarding subsidy programs designed to replace the tax exemption.

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Comments (1)
Wonderful points. And Robert didn't even get into the problems with most potential direct grant programs such as infrastructure banks: frequently no rhyme or reason as to which projects get funded, delays in funding, state and local governments taking the grants because they exist, not because they are needed, etc.

This is not to suggest that a combination of tax-exempts, low-subsidy BABs and direct grants couldn't be really effective under the right circumstances. Unfortunately, the current conditions of political and bureaucratic impediments doesn't necessarily create the right circumstances.
Posted by mrmuni12 | Thursday, June 20 2013 at 5:16PM ET
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