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We can't deny it, higher taxes are in our future. After much debate, Congress passed a deficit reduction bill designed to trim billions off the nation's debt using a combination of spending cuts and tax increases. To individual investors, this new budget means two things: 1. The new taxes and spending cuts
will affect almost everyone.
And 2. Tax-free municipal bonds are more
important than ever!
What's more, many experts believe that the recent round of tax increases is only the tip of the iceberg and that more increases are on the way. If this is the case, the attraction of municipal bonds will become even stronger. Why? Because municipal bonds are federally and, in some cases, state and local tax free as well.
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