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And that is a shot of Times Square the crossroads of the world very busy today.
On to the government taking more of your money Uncle Sam trying to get money from your Muni bonds.
Joining me dot now to talk about the possibilities of increased taxes on your Muni bond results -- called on president of -- bomb capital management okay.
So Gary this is a big talk the White House looking for tax revenues and they're saying -- -- -- we should do is tax Muni bonds would anybody.
Ever by -- Muni bond again if that happen.
Well be a huge mistake on their part look people invest communities for their tax deductibility simple and that -- -- -- any or all of the tax tax deductibility.
And -- people are gonna go elsewhere just the huge mistake but these are people that are spending like mad and looking for revenues anywhere and they go after the well -- -- -- the pot and -- -- meaning about taxes thirty billion dollars this is something.
That the White House just doesn't want to keep its hands off this is the third time they've suggested doing that I believe.
Tell me what would be the an -- consequences of this.
Well they're not gonna affect the the the rich the rich will go somewhere else but who what will it affect.
The cities the State's municipalities.
How to how do you they raise money.
Through the Muni bonds this is -- -- worth hospitals.
Ought airports you name it for the public good the good of the public.
Yet they are willing to do -- like this would be stupid and states and cities were already on their back this'll hurt projects hurt -- the economy also I don't get where they go with us.
I don't get what they're going either but.
I have to say.
You know you say -- rich will go elsewhere but the reality is it's often just your average retiree who invest is investing Muni bonds may -- a Muni bond fund.
They're gonna get hit here too so you -- have -- effective.
Robbing money from the localities that need it most while also hitting people who were at or near retirement who were trying desperately.
To -- all the money they can see it seems to me to be a double whammy what do you say Gary.
It seems to me who's ever come up with this idea I think came out of the movie One Flew Over the Cuckoo's Nest.
It just makes absolutely no sense whatsoever there was no upside to win.
And -- you know when you try to get revenue from a place the people with that revenue will definitely go somewhere else.
There is something called the corporate bond market.
And it -- -- -- -- the -- gone corporates and it'll look better and that's very of people go elsewhere and who loses city states and the projects that are important.
Tell them I want to talk about all these Muni bond funds that were dumped in June now let's comes as a surprise some thirteen point five billion into the second largest monthly outflow on record.
What's going on there why are people getting out of anybody.
Well wasn't a surprise to me look the Fed it's created a bond bubble -- price and -- have been distorted -- YL.
People been buying bonds at any price.
-- yield and when things get out of whack eventually.
Normal -- -- gonna happen all you've seen about the last two with three months.
Is -- interest rates normalizing for the upside and he's bond funds which are perpetual get whacked -- -- election no.
A lot of these many bond funds lost three years of being come over the last two months after the very rough road for people.
Just quickly here and we don't have a lot of time but -- if this were to happen and I frankly I'm not sure well.
But if -- were to happen that Muni bonds were to be taxed where would you tell people to go instead.
Probably go to -- But be quick because I can tell you there be a rush of money out of beauties.
To find those various and then they'll get overpriced -- I do not think this is gonna happen though I can promise you.
-- city and state governments will be yelling and screaming at the top of their lungs.
If they even you know broach the subject I know they're doing a little bit but I think it's more of a trial balloon than anything else.
Keep my fingers crossed somebody get Smart the white.
-- prevalence boy I'm tired as Gary thanks for coming out it's always great talk to you thank you.
My pleasure thank you.
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