I was doing a write-up about the new Medicare tax on net investment income, and one thing that struck me is that tax-exempt municipal bonds are one of the few income sources that won't be hit by it. We've always called those bonds triple-tax-free, because they aren't subject to federal, state, or local income taxes for residents of the places that issue them. Now that has to be updated to quadruple tax free, because their interest won't get hit by the Medicare tax on net investment income either.
A Google search for "quadruple tax free" turns up NO HITS vs over 100k
for "triple tax free." Well, OK, I get 10, but none have anything to do
with this. So, you heard it here first!
- posted 7 years ago