Financial Management White Papers
Tax-Credit Bonds and the Federal Cost of Financing Public Expenditures
Overview Tax-credit bonds - bonds on which the federal government pays "interest" in the form of credits against federal income tax liability - have been proposed as a mechanism for financing various expenditures at all levels of government. In instances in which the bonds would be used as an alternative to federal appropriations as a source of funding, the cost to the federal government would be greater than it would be with financing through conventional borrowing by the Department of the Treasury. But carefully designed tax-credit bonds could cost the federal government less per dollar of assistance provided to state and local governments than the federal tax exemption now accorded "municipal" bonds issued by those governments. This Congressional Budget Office (CBO) paper explains those conclusions.
| Publisher | Congressional Budget Office | File Format | |
|---|---|---|---|
| Date Published | July 2004 | Downloads | 10 |
| Format | White Papers | ||
| Topics | |||
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