Quote:
Originally Posted by downeaster
I have followed this thread fairly closely with great interest. One item does not seem to have been discussed. That is the bondholders. There was some mention of mutual funds but nothing definite.
Is it possible to obtain the name (s) of bondholders?
Are we to believe mutual funds would invest blindly in tax free bonds without making certain they were valid?
Is it conceivable the bonds were purchased by a smaller entity? Maybe a private sale?
A lot of tax free money has been made by someone. Now are the bondholders are going to be told it wasn't tax free? Will they be liable to pay the tax along with penalties?
There have been many intelligent and thought provoking posts on this thread. I would like to hear your thoughts on my questions.
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Here is a very interesting article that partially answers some of your questions:
Billionaire Morse
It sets forth some very interesting information, of which I was not previously aware, e.g.:
At least $955 million of Morse’s fortune comes directly
from money paid to him from the issuance of tax-free municipal
bonds — including the bonds ruled taxable by the IRS, according
to data compiled by Bloomberg from an analysis of 38 bond-offering statements since 1992.
Wow, our tax dollars (or, more precisely, tax subsidies or loopholes) at work. It makes you think that Congress ought to be taking a close look at who, if anybody, should be able to issue tax-free bonds. Maybe there is something to be said for eliminating them altogether, an idea that is currently being kicked around in Congress.