Posted: Tuesday, January 26, 2010 by
Trudie McConnell
The Build America Bonds (BABs) program, a new piece of legislation from the Obama Administration, focuses on aiding struggling state and local municipalities across the U.S. The program creates taxable municipal bonds, a radical departure from the long-standing tax exempt status quo for munis. While bonds issued under the BABs program are fully taxable, the issuer receives a direct subsidy equal to 35% of the bonds coupon, or stated interest rate.
Finance / Personal Finance