The interest earned on the federal government's debt is exempt from state income taxation.

Name: The interest earned on the federal government's debt is exempt from state income taxation.
Brand: Quizplus
Rating: 4.9 (63 reviews)

Question

Quizplus · Accepted Answer

The interest earned on U.S. Treasury securities, which include Treasury bonds, notes, and bills, is exempt from state and local income taxes. This is a benefit offered to encourage investment in federal government debt securities.

The Interest Earned on the Federal Government's Debt Is Exempt