Would you call tax exempt funding as subsidization.

[ICRS]

Lets say Party-A provides a service at cost for an area. Party-B provides the same service for another area.

Lets say Party-A has authority to issue Non-AMT bonds for revenue, Party-B can only issue stocks and taxable Bonds.

Party-A income from providing this service is also exempt from taxes, while Party-B has to pay income tax on it.

Remember Party A and B provide the same service in two different areas.

Thus Party-A cost of funding is lower due to tax exemption. Is Party-A being subsidized by the federal government and people.

The reason for the difference is Party-A is government entity in the city it provides this service too, while Party-B is a private entity in the city it provides this service too.

 

[Ns1]

yes

 

[hehatedme]

Instead of typing all those useless details, you could have just asked "Do you think issuance of municipal bonds are a form subsidation from the federal government?"

What are you trying to discover here?

 

[ICRS]

Originally posted by: hehatedme
Instead of typing all those useless details, you could have just asked "Do you think issuance of municipal bonds are a form subsidation from the federal government?"

What are you trying to discover here?

My electricity is provide by a government agency which has full tax exemption, and
non-amt issuance authority. Their revenue is fully tax exempt.

The electricity for the county next door is provided by a private company. Their revenue is fully taxable. Their bonds are subject to income tax, and their stocks are subject to capital gains tax. Their income is also subject to corporate income tax.

Made we wonder if in some way are the people in other parts of the country subsidizing my electricity.