This article is from Cal-Tax Digest, published by the California Taxpayers' Association. By Bradley L. Jacobs T ax-exempt bonds have been a heated subject at state and county government, in Congress, at the U.S. Department of the Treasury, and in financial markets.
Physical assets exist only to provide services.
But, it is not the services that are being funded by the proceeds of these bonds. It is the physical assets. I think the distinction truly is important. We can learn from the general revenue sharing situation and county actions which stimulated its demise. General revenue sharing money was sent to counties in periodic packages.