This article is discussing whether municipal bonds should remain in the tax-exempt status. The Government Finance Officers Association (GFOA) believes that municipal bonds should remain tax-exempt because it reinforces our nation's federal system and provides major advantages to communicate across America.
Tax-exempt municipal bonds provide lower costs funds to state and local government to fund infrastructure and services. If local and state government had to pay tax on municipal bonds it would hindrance their ability to fund vital public infrastructure and services because they would be required to find other means of raising revenue to offset the increased finance cost.
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