Re: Consequences in a Fiscal Plan: Municipalities Fight Proposals to Tax Their Bond Interest
Dear Sirs:
There is another objection to taxing municipal bond interest that goes beyond one of class warfare (“the government forgoes about $32 billion a year in taxes”) and stands upon the principle of federalism, a check upon the power of government every bit as important as the separation of powers. Or is this principle to be thrown aside, as have so many others, as a barrier to the desires of the all-powerful federal government? Patrick Barrron
