Monday, November 19, 2007

lazarus lives

I bet at least one person out there is interested enough to read the bond statement for the recent refinancing of some debt incurred for the Center Triangle Tax Incrementing Financing District, which is Downtown.

That is mostly an excuse to point out one of the more important, if really esoteric, things going on in the world of municipal bonds (bonds? we've got bonds). The US Supreme Court is expected to rule in the next few months in a case that could disallow some state tax exemptions of interest paid on certain municipal bonds. The issue is that bond interest could be bumped up a small bit. For Pennsylvania it may be a smaller impact than most other states because for high income taxpayers (bond buyers presumably) our tax rates are relatively low. So it may be a very small impact, but when you are a billion or so in the hole... every mil counts. Related trivia: Pennsylvania is one of only a few states that has a flat personal income tax, i.e. no progressivity at all.

2 Comments:

Blogger O said...

Bond documents are a non narcotic cure for insomnia.

Monday, November 19, 2007 11:35:00 PM  
Blogger C. Briem said...

cheaper too.

Tuesday, November 20, 2007 9:57:00 PM  

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