A tax-exempt security, commonly a municipal bond, is an investment that generates income that is free from federal, state, and/or local taxes.

State and local leaders have billions of reasons to worry Congress could end the tax exemption for municipal bond investors.

Tax-exempt bonds pay interest that is exempt from either federal or state income ... A brokerage account is typically used to build future financial security or invest for long-term goals. 2. By ...

Tax-exempt bonds offer a unique advantage by providing interest income that is generally free from federal taxes. The IRS recognizes these bonds as part of a broader category of tax-advantaged ...

This legislation was the first such comprehensive tax reform since 1986, although various suggestions to eliminate or reduce municipal bonds’ tax-exempt status have since made their way to the ...

In this article, we consider the current environment and congressional discussions related to the potential removal or cap of the municipal tax exemption.

Bond: A bond is a debt security. ... But not all municipal bonds are tax-exempt. Default: Failure of a bond issuer to make interest payments or to repay principal.

Even under the reduced income and surtax rates of 1924, a taxable bond would have to yield 8.33% to net an investor with $500,000 or more income as much as a 4½% tax-exempt bond. Nevertheless ...

Tax-equivalent yield compares tax-exempt and taxable bond returns for better investment choices. Your location's tax rates affect the tax-equivalent yield, making some bonds more beneficial ...

The tax package released by the House Ways and Means Committee doesn’t include material changes to tax-exempt municipal bond financing. Most muni bonds pay interest that’s exempt from federal tax.