Purchase Solution

federal tax exemption of interest on state-local debt

Not what you're looking for?

Ask Custom Question

Is the federal income tax exemption of interest on state-local debt an inefficient subsidy in terms of "transfer efficiency"? What are the arguements for and against it being an ineffiecient subsidy in terms of "transfer efficiency"? thank you.

Purchase this Solution

Solution Summary

federal income tax exemption of interest on state-local debt/ bonds

Solution Preview


The arguement for inefficiency is that state and local governments must go through the vagueries of the market to get the funds they need to pay for capital projects to maintain or improve basic infrastructure. They must also pay back this debt, making this method more ...

Purchase this Solution

Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.


This tests some key elements of major motivation theories.


This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)