Director of Credit Analysis
Stoever Glass & Co., Inc.
P: (862) 432-8818
Every time the topic of federal tax reform is mentioned, it invariably includes a discussion of whether income from municipal bonds should be eliminated. Since the federal income tax was instituted early in the 1900’s state and local governments have taken the position that matters established by states are within their powers, and that federal taxation of municipal bond interest was not subject to federal interference. That doctrine held firm into the 1980’s, when South Carolina lost a lawsuit that challenged states’ rights. Since then, the federal government has been chipping away at tax exemption for municipal bonds.
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