(Bloomberg) Wall Street has some election-year advice for its customers: load up on municipal bonds because income taxes for the wealthy are bound to rise.
With a record budget deficit of $482 billion awaiting the next president, strategists are betting Democrat Barack Obama and John McCain, the presumptive Republican nominee, will be forced to increase charges for top earners. That would boost the value of the tax exemption on income from state and local government debt, which has eroded since Ronald Reagan made cuts a pillar of his administration when he took office in 1981.
``Tax rates are going to be higher no matter who's elected,'' said Craig Elder, the fixed-income analyst in the private wealth division at Milwaukee-based Robert W. Baird & Co., which oversees $60 billion for individuals. ``If you're in the top tax bracket, munis are your strong buy right now.''
Read entire story
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment