One of the most important reasons that Investors in the highest marginal tax brackets love municipal bonds is because of "Triple Tax Exemption."
1) For example, the New York State Resident buying a tax-exempt NY State Municipal Bond would receive income from this NY MuniBond which is exempt from Federal Income Tax, State Income and the Local Income Tax.
2) Looking at the attached map of the United States, it is no mystery why there is perennial huge demand for NY and California Municipal Bonds.
3) It is also no mystery why Texas and Florida are attracting hundreds of thousands of California and New York residents.
4) MuniBonds from Territories such as Virgin Island and Guam also afford bond holders "Triple Tax Exemption" on interest income.
5) An investor does not need to be in the highest marginal tax bracket to benefit from owning Municipal Bonds. Reach out to jeff@watkinsoncap.com if you want to explore.
6) It is rewarding for us to serve citizens in just about every state in our nation. We enjoy learning about the different credits and authorities that provide essential services and infrastructure.
Warm Regards,
Jeff Watkinson
jeff@watkinsoncap.com