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 is the base case regarding municipal bonds (munis) and their tax advantages?

How have historical changes in the top marginal tax rate affected municipal bonds?

What are some qualities of munis that make them attractive to investors beyond tax advantages?

What potential impact could the loss of the ability to deduct state and local taxes have on municipal bonds?

What uncertainties exist regarding the financing of infrastructure spending?