Efficiency Loss and a great CBO report

This CBO report  is really good on scoring various policy proposals and how much money they will save.

Pg. 211 is what I’m interested in these days. Municipal bonds are tax exempt (no one pays taxes on the interest one receives from them) and so they are bought a lot by investors. But, we can incentivize those investors to the same amount by making them pay taxes and then give a tax credit back. This would gain the U.S. treasury a small sum of money AND have the same effect as the current tax free status.


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