November SGE Luncheon
Thursday, November 29, 2007
"The Dormant Commerce Clause and the
Balkanization of the Municipal Bond Market"
Alan D. Viard, Resident Scholar
American Enterprise Institute
The selective state income tax exemption for home-state municipal bonds
challenged in Davis v. Kentucky Department of Revenue functions as a
trade barrier, similar to an import tariff, in the municipal bond
market. The selective exemption favors within-state holdings of
municipal bonds over interstate holdings. Observation confirms that the
selective exemption has balkanized the municipal bond market and harmed
investors. The recognized exceptions to the dormant commerce clause of
the Constitution should not be extended to uphold the exemption.
Instead, the exemption should be struck down as an obstruction of
interstate commerce.Chinatown Garden Restaurant 618 H St., NW,
Washington Metro: Gallery Place (Red, Green, and Yellow Lines). Restaurant is 1/2 block east of the Metro station's northern (H Street) exit.
Reservations by 11:30 am November 28th, to Brian Sloboda:
Brian.W.Sloboda@usps.gov
$15 for SGE and NEC members $20 for non-members