Why aren't there such a thing as "Municipal Equities"?

Here's an idea: A town which needs money for capital expenditures
raises money, but not via leverage. what would be the advantages and
disadvantages of this? My idea envisions that owners of this
"municipal stocks" would NOT pay tax, but only for people of that
municipality. So there would not be taxes on dividends or capital
gains.
One thing good about my idea is that this EXEMPLIFIES the 'ownership
society'. Another words, the locals would own a stake from their
community. They would be motivated to increase the value of their
neighborhoods and all.
What do you think?
Reply to
2.7182818284590...
2.7182818284590... wrote
Its just a tad unlikely that you will be able to come up with a viable new idea in an area where we have been doing it for hundreds or thousands of years.
You need to rephrase that, not clear what you mean.
Presumably you mean in their community. They already do.
I cant see that what you are proposing is any different to what we have but that may just be because you havent really explained what you propose clearly.
Reply to
Rod Speed
The problem is a municipality is 90% privately owned. The majority of most municipalities are either residential or corporate property. So what are you buying equity in... their tax dollars?
- Chad
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Reply to
doctorbry
Nope, thats not only not a problem, its worked fine for millennia.
Yes.
It isnt clear that he is proposing buying equity in anything.
Reply to
Rod Speed
On Nov 9, 10:48 pm, "2.7182818284590..." wrote:
Hmm.
"City Of Long Beach Acquired By China in Hostile Takeover."
Citizens of the California city of Long Beach were stunned yesterday to find that from now own their tax dollars will be going to communist China. Not only that, but from now all all candidates for city council must be cleared with Beijing. "I told them this might happen, that we could be selling our freedom," said Long Beach resident Jackie Oscherow, "but no, all they cared about was ROI."
Reply to
patpowersspam
Everybody with a traffic ticket would be sent to the Workhouse to pay off their fine. Six months for a parking violation, two months for walking on the wrong side of the sidewalk.
Reply to
r0364
They're more into a bullet in the back of the neck, and sending the bill for the bullet to the relos.
of the sidewalk.
Bullet in the back of the neck is a lot more effective.
Reply to
Rod Speed
But never forget, the vast bulk of municipal bonds in the USA are owned by Americans, since foreigners will not benefit from the tax- benefits of this. So, the "municial stocks" can be structured such that the foreigners will not benefit from this either because the capital appreciation and dividends will not be so high. After all, investing in a county's utility and roads are a mature industry and capitally intensive. They will not appreciate much, but, like a utility company, will pay a dividend. If the *lower*, but tax- shielded, dividends and capital appreciation doesn't repel a foreigner, than of course, there can be other 'preventers' which would prevent foreigners from buying the shares. For example - just like an American can't buy a significant portion of Chinese companies, we could have the same rules governing my "municipal stocks/equities."
Reply to
2.7182818284590...

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