Investors seeking a tax-advantaged source of income have long been attracted to municipal bonds. The appeal centers on the fact that municipal bonds offer income that is generally not subject to federal income tax and sometimes is free of state and local tax liabilities as well. Since the bonds are typically issued by state or local government entities (often supported by the authority to levy taxes to fulfill their debt obligations), they have always been considered a relatively safe haven for income-oriented investors.
INVESTING Invest: Rikoon says it's time to look at municipal bonds
..., the list of some of the risks of investing in municipal bonds included in the Bulletin may be...
Because Kentucky's law penalizes those who engage in activity out-of-state by subjecting investment in out-of-state municipal bonds to tax burdens not borne by taxpayers investing in-state, it is unconstitutional. Such a finding would neither infringe upon state sovereignty nor excessively impact municipal bond markets. The Supreme Court could also consider the Kentucky exclusion in light of the Import-Export and Privileges or Immunities Clauses, because Kentucky is imposing an impermissible duty on activity that crosses state lines and burdening individuals who cross state lines in pursuit of an honest living, in contravention of the rights those clauses are designed to protect. The Court should also be cautious not to suggest that discriminatory taxes are scrutinized more intensely th...
New York, like many states, is facing record deficits in its state budget. However, in their haste to fill the budget gaps, our public policymakers are killing jobs, suffocating businesses and quietly increasing taxes on individuals and businesses under the guise of assessments on New York chartered insurance companies. Recent data shows that the property and casualty insurance industry is a major economic driver in this state, employing 35,000 people, investing more than $22 billion in state municipal bonds and paying more than $20 billion in claims in 2007.
NEW YORK Many investors have long viewed the tax advantages municipal bonds provide as largely benefiting the rich, who pay a higher tax rate. While it's true that investing in municipal bonds is a no-brainer for those in the upper brackets, it's also something for regular investors to consider. The mentality that it's only for the rich isn't right," said Jim Murphy, a portfolio manager at T. Rowe Price Group Inc.
Taxes can take a third or more of some investments unless there is planning. Tips are offered on investment strategies to prevent retirement savings from being eroded by taxes. Tax-exempt and tax-free investing is discussed. These include IRAs, 401(K) plans, municipal bonds, and variable annuities.
NEW YORK - Many investors have long viewed the tax advantages municipal bonds provide as largely benefiting the rich, who pay a higher tax rate. While it's true that investing in municipal bonds is a no-brainer for those in the upper brackets, it's also something for regular investors to consider. The mentality that it's only for the rich isn't right," said Jim Murphy, a portfolio manager at T. Rowe Price Group Inc.
Advantages of investing in bonds - Column Municipal bonds are an attractive investment because they provide a way to shelter income from federal and state income taxes. Corporate bond trusts are another way to invest in bonds. They offer the advantage of providing a hedge against interest rate increases or decreases.
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