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来源类型 | Research Report |
规范类型 | 报告 |
Municipal Debt: What Does It Buy and Who Benefits? | |
Harvey Galper; Kim S. Rueben; Richard C. Auxier; Amanda Eng | |
发表日期 | 2014-10-28 |
出版年 | 2014 |
语种 | 英语 |
概述 | This paper examines the incidence of the federal income tax exemption of interest on state and local bonds, applying a fixed-savings, simplified general equilibrium approach to estimate incidence effects on both the sources and uses of income. In contrast to traditional empirical work that allocates the benefit of tax exemption only to current holders of tax-exempt bonds based on current interest rates, we |
摘要 | This paper examines the incidence of the federal income tax exemption of interest on state and local bonds, applying a fixed-savings, simplified general equilibrium approach to estimate incidence effects on both the sources and uses of income. In contrast to traditional empirical work that allocates the benefit of tax exemption only to current holders of tax-exempt bonds based on current interest rates, we incorporate the fact that the existence of tax exemption causes the taxable interest rate to rise and the tax-exempt rate to fall. As a consequence, on the sources side, tax exemption can increase after-tax income for holders of both taxable and taxexempt bonds. On the uses side, consumers of both private and public goods are affected by the higher cost of funds to private and federal government borrowers, the lower cost of funds to state and local borrowers, and the lower cost of funds to private-sector entities with access to the proceeds of tax-exempt borrowing. Overall, higher income individuals remain the primary beneficiaries of tax exemption on the sources side with this new approach, but less so than under the traditional approach. On the uses side, households who consume a relatively large share of state and local public services, such as those with several school-age
children, receive significant net benefits.
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主题 | Economic Growth and Productivity ; Taxes and Budget |
URL | https://www.urban.org/research/publication/municipal-debt-what-does-it-buy-and-who-benefits |
来源智库 | Urban Institute (United States) |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/478665 |
推荐引用方式 GB/T 7714 | Harvey Galper,Kim S. Rueben,Richard C. Auxier,et al. Municipal Debt: What Does It Buy and Who Benefits?. 2014. |
条目包含的文件 | ||||||
文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
109047-municipal-deb(411KB) | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 |
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