70 Pages Posted: 20 Apr 2007
A Proposal for the Elimination of the Exclusion for State Bond Interest suggests a novel replacement to § 103 of the Internal Revenue Code that eliminates the inefficiencies and inequities currently created by that provision. Section 103 functions primarily as a federal subsidy to state and local governments by allowing taxpayers to exclude from gross income the interest received from certain state bonds. This article asserts that § 103 should be reformed and proposes a "Credit-Equity" plan to replace the state subsidy currently provided by § 103. It also examines § 103's history, function, and prior proposals for its repeal or change.
Suggested Citation: Suggested Citation
Yamamoto, Kevin, A Proposal for the Elimination of the Exclusion for State Bond Interest. Florida Law Review, Vol. 50, p. 145, 1998. Available at SSRN: https://ssrn.com/abstract=981069