One major tax loophole intended to help state & local governments raise funds is
A)fiscal federalism.
B)tax exempt municipal bond interest.
C)tax deductible mortgage interest.
D)tax credits for solar panels.

Question

Quizplus · Accepted Answer

Tax exempt municipal bond interest allows state and local governments to issue bonds to raise funds for various public projects without having to pay federal taxes on the interest earned by those bonds. This provides an incentive for investors to buy these bonds, and allows governments to access affordable financing for projects that benefit their communities.

One Major Tax Loophole Intended to Help State & Local