Reform to the tax-exemption for municipal bond interest could be a benefit or a burden for lower-income households, depending on how state and local governments respond to higher borrowing costs, according to a paper from the Tax Policy Center.

The paper aims to determine who benefits from the tax-exemption and how the benefits are distributed across income groups under current law. It also looks at how people could benefit or be burdened by capping the value of the tax-exemption at 28%, as was proposed in President Obama’s fiscal year 2014 budget.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.