Tom White for The New York TimesLeslie Quick III, who described himself as a centrist Republican, said he and his new partner spent $2 million of their own money to start Massey Quick, a wealth manager and investment adviser — something they might not have done if tax rates were higher.
Paul Sullivan writes in his Wealth Matters column this week about President Obama’s proposal to make Americans who make more than $1 million a year pay at least the same percentage of their earnings as middle-class earners.
The number of people affected by the proposal is quite small, Paul notes — about 60,000 people. But the plan has several unintended consequences for people who make far less than $1 million a year. Under the proposal, only taxpayers who pay an income tax rate of 28 percent of less would continue to get a tax exemption for the interest on municipal bonds. Now, all taxpayers can claim the exemption.
Limiting the exemption could raise the cost of borrowing for municipalities, and that cost would then be passed on to city and state taxpayers. And the change could limit the number of people interested in buying municipal bonds — at a time when the municipal bond market has been weak.
Have you bought municipal bonds in the past? Would a change in the tax laws affect your decision to buy them in the future?
Article source: http://feeds.nytimes.com/click.phdo?i=eedb297118ef544f962d96ce12ddbe7f
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