Some turn out to have broken the law, keeping their assets out of state bonds.
The money can be placed in federal or state bonds, managed funds, Australian companies, or in a combination of those assets.
The case argued Monday dates to 2003, when a Kentucky couple argued taxation of out-of-state bonds allowed the state to block interstate commerce.
The money can be poured into federal or state bonds, managed funds, or nonlisted Australian companies, or else invested in a combination of those assets.
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Insurance companies' response to the crisis has been depressing: as well as demanding, reasonably, compensation for their losses on state bonds, they also want laxer capital requirements and an extension of the ban on foreign-controlled insurers.
States such as Wisconsin and Indiana tax in-state muni bonds already, so changing the income tax rate will not materially impact in-state investors.
Monday the Court considers whether to treat in-state and out-of-state municipal bonds differently for income tax purposes.
So when a city or state sells bonds to build a new school, sewer or stadium, investors form a line around the block.
Currently, 38 states exempt interest on their own municipal bonds from state income tax, but tax revenue on bonds from other states.
Mr Sarris had proposed instead setting up a Cypriot state company offering bonds to Russian commercial investors, the Russian finance minister said.
Watch me debate the state of muni bonds on The Kudlow Report.
They include the tax exclusion for employer-sponsored health insurance, the mortgage interest deduction, tax-free interest on state and local bonds, and dozens of others.
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The government dammed some of the fiscal drains, cracking down on free-lending state banks and the issue of state and municipal bonds, for example.
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Another problem: Many states are contractually obligated (under the state constitution in some cases) to exempt interest on their municipal bonds from state income tax.
In the experiment capital gains and dividends are taxed as ordinary income and there is no exclusion for state and local bonds issued after December 31, 2012.
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It concerns whether interest paid by a state on the amount it owed for taking property was excludible under Section 103 (Interest on State and Local Bonds).
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Interest earned on state and local bonds that is exempt from income tax under Section 103 is excluded from the definition of net investment income for purposes of Section 1411.
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One idea being bandied about entails replacing the tax exclusion for interest on state and local bonds with a direct subsidy to the issuer of 15% for the interest paid on those bonds.
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Interestingly, on 14 October 1991, two members of the Center for Security Policy's Board of Advisors made essentially these points in separate speeches to the National Leadership Conference of the State of Israel Bonds Organization in Washington.
Like BABs, AFF Bonds would be conventional taxable bonds issued by State and local governments in which the Federal government makes direct payments to State and local governmental issuers in a subsidy amount equal to 28 percent of the coupon interest on the bonds.
As for holders of New York State tax-free bonds, a renowned financial expert, Richard Ravitch, until recently Lt.
He recommends investors hold low risk, highly rated bonds of state owned companies.
And because of its recent failure to push through a comprehensive tax-reform package, he says, the government will have to rely on selling state assets and issuing bonds to balance its books.
One way to look at this is to analyze the state of high-yield bonds.
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Click here for the highest yielding and safest municipal bonds in your state, found in Forbes Tax Advantaged Investor.
Money market funds may also invest in municipal bonds backed by state governments, short-term notes issued by corporations, or CDs.
The bond program, set to expire Dec. 31, provides federal subsidies for taxable bonds issued by state and local governments.
Because the Rhode Island loan guarantee is backed by "moral obligation" bonds, the state can choose to not pay the millions borrowed by 38 Studios.
For the history-challenged, I recommend reviewing the experience of holders of Washington (state) Public Power Supply bonds that were issued to fund a nuclear power plant.
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