Municipal Bond Fund Outlook for 2018: Will Tax Reform Affect Performance?Submitted by Reby Advisors on November 8th, 2017
Municipal bonds are an inexpensive form of debt for cities and municipalities. For investors, they offer a low-risk asset class with tax advantages. The higher a household's marginal income tax rate, the greater the advantage of holding municipal bonds.
The current proposed tax reform plan includes a reduction to the top marginal tax rate. This may marginally reduce demand for municipal bonds. On the other hand, lower corporate tax rates may reduce corporate issuance of private bonds, increasing the attractiveness of yields from municipal bonds.
Special guest speaker John Ross of Rogerscasey discusses the push-and-pull on municipal bonds in the three-minute video clip above. This is footage from THE TRUMP ECONOMY and YOU presentation in Danbury, Connecticut on October 25th. To view the full presentation on our Youtube channel, follow this link: THE TRUMP ECONOMY and YOU.