Tracking Performance : Assessing the returns of a group of individual bonds can be difficult, because the income is not reinvested and some bond issues may not be readily priced.
So, if all that happened was that the tax savings of 2.0 percentage points of GDP and some of the savings in tax compliance costs got reinvested, eliminating the corporate income tax would increase U.S. economic growth by 1.0 percentage point.
Bonds, whether they are municipal, government or corporate bonds, can also provide for compounded growth opportunities when the income received from the bonds is reinvested.