BlackRock's Carney Says Tax Reform Won’t Hurt Munis

The video discusses the tax advantages of municipal bonds (munis) and their historical context, including changes in top marginal tax rates during the Reagan and Bush administrations. It explores the potential impacts of tax revisions on munis, particularly if state and local tax deductions are removed. The video highlights the enduring nature of the muni tax exemption and considers future infrastructure financing options, such as public-private partnerships and the potential return of Build America Bonds. The role of corporate taxes and their influence on the muni market is also examined.

What historical precedent is mentioned for lowering the top marginal tax rate?

• The Obama administration

• The Nixon era

• The Clinton administration

• The Reagan years

What could happen if individuals lose the ability to deduct state and local taxes?

• It would have no effect on state and municipal governments.

• It would lead to a decrease in federal taxes.

• It would decrease pressure on state and municipal governments.

• It would increase pressure on state and municipal governments.

Why is the muni tax exemption considered resilient?

• It is not widely used.

• It is based on deductions.

• It has been around for over 100 years.

• It is a recent development.

What is one uncertainty mentioned regarding infrastructure financing?

• The role of international banks

• The return of build America bonds

• The influence of foreign investors

• The impact of climate change

How might changes in corporate tax rates affect the municipal bond market?

• They would have no effect.

• They could increase the value of munis.

• They would only affect individual investors.

• They would decrease the value of munis.