Re:SpaceX hits $100B valuation after secondary share sale
by CrazyStat on Friday October 08, 2021 @12:46PM
(#28801259)
> Funny how that works? You write the laws so to favor muni-bonds by making them largely tax free, and then suddenly the free-market takes away the advantage lol.
The advantage is still there, it just goes to the municipalities issuing the bonds (where it gets passed on to taxpayers).
Re:SpaceX hits $100B valuation after secondary share sale
by dragontamer on Friday October 08, 2021 @12:49PM
(#28801280)
I guess that's true.
As someone who'd like to buy more munis however, I'm frustrated that I don't get a "piece" of the tax-savings. But you're right, the perspective is about reducing the %rates that cities / states pay, not about increasing the $$$ in my pocket as an investor.
The highway down my parent's house was supported by muni (state-level bonds). I bought bonds to support a hospital in Detroit (and made lots of money on that!!). Etc. etc.
Look up muni-bonds: they support highways, bridges, hospitals, and other infrastructure. I don't know if there's any for NASA specifically, but plenty of options if you actually want to invest in the country itself.
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The main downside is that they're tax-free, which means their interest rates are set such that they assume you're a millionare. So if you're paying anything less than the top-tier tax bracket, you're kinda wasting money on a risk/reward basis. That is to say: if "normal bonds" are getting 4% right now, all the munis would be priced at you'd get roughly 2.52%, assuming the top tax bracket of 37%. All bonds have a level of risk that's graded on a sliding scale: AAA bonds are the lowest risk (and lowest %rate), and C being the lowest.
Funny how that works? You write the laws so to favor muni-bonds by making them largely tax free, and then suddenly the free-market takes away the advantage lol.