Municipal Bond Forum
Highly unlikely tax-free munis become taxable
Q
I do enjoy your occasional remarks about muni bonds very much. Having said that, what is the likelihood that muni bonds could lose their tax-free status?
A
James A. Klotz responds:
Naturally, in the current economic environment anything is possible. This however, would require an alternate method of financing municipal projects.
Regardless, we think the likelihood of this occurring would be remote and if it did, existing bonds would have to be grandfathered in and remain tax-exempt.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.