Taxes on Tax-Exempt Bonds

摘要：

Individuals must pay tax on the secondary market transactions of tax-exempt bonds. The profits involving changes in bond prices are taxed either as income or as capital gain. We find that municipal bonds subject to tax command higher yields than non-taxable municipal bonds in data. However, yields on high credit quality, taxable municipal bonds are around 30 basis points higher than what can be explained by a present value model with after-tax cashflows and are especially high for bonds with short maturities. We estimate an implied tax rate of around 80％ using trades of municipal bonds entering regions where income taxes apply.

关键词： municipal bonds income and capital gains tax de minimis boundary public finance

作者: Andrew Ang Vineer Bhansali Yuhang Xing

作者单位: Columbia Business School, 3022 Broadway 805 Uris, New York, NY 10027 PIMCO, 840 Newport Center Drive, Suite 100, Newport Beach, CA 92660 Jones School of Management, Rice University, Rm 342, MS 531, 6100 Main Street, Houston, TX 77004

会议类型: 国际会议

会议名称: 2007年中国金融国际年会

会议地点: 成都

会议语种:英文

页码: 1-62

在线出版日期: 2007-07-09（万方平台首次上网日期，不代表论文的发表时间）