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Ahrenl

join:2004-10-26
North Andover, MA
reply to batterup

Re: hmmmm......

Actually the most successful muni projects are built without property tax revenues. Do you know how cheap it is to issue municipal revenue bonds? The interest rate is around 3-4% due to their tax advantaged status. If revenue bonds are defaulted, the assets that are funded by them are granted to the bond owners, but there are no possible repercussions on the community. (other than loss of the built asset).

But please, keep spouting uninformed nonsense.



cracker 52

@comcast.net

The reason why municipal bonds have low interest rates is because of the tax breaks given by the Federal (and sometimes state) government to the bond holders. So, the loss tax revenue is a cost to those who are paying taxes.


Ahrenl

join:2004-10-26
North Andover, MA

You mean a loss to those receiving taxes. These usually are purchased by money managers, or large corporations, both of which are probably not paying taxes to the local community. So the there will be a tax loss to the federal coffers, which I only count as a good thing. The less money DC has, the less things they can screw up, unless they use deficit spending.. Ahemm.



batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
reply to Ahrenl

said by Ahrenl:

But please, keep spouting uninformed nonsense.
Spout this, make your children, if your kind will ever have children, pay for it. There is no free lunch.
The only people that think things are free live in their mothers basement and eat her food.