smuggycfa

Perhaps because I view "tax loophole" as having a negative connotation, I wouldn't categorize muni's as a tax loophole. The tax-exempt status for most muni's simply serves as a way for the federal government to help promote local development projects. If muni's weren't tax-exempt, towns and states would have to pay higher interest rates to attract buyers, effectively increasing the cost of every project and probably killing a lot of those projects.