Municipal Bond Subsidy Rates

Municipal Bond Subsidy Rate

Year	(1) Tax-Exempt Interest	(2) Plan X Revenue	(3) Plan Y Revenue	(4) Subsidy Rate ((3)-(2))/(1)	(5) Ignoring AMT
1988	32.80	409.15	420.91	0.36	0.36
1989	37.23	427.95	441.39	0.36	0.36
1990	40.01	442.63	457.01	0.36	0.36
1991	43.76	443.04	459.26	0.37	0.37
1992	45.67	469.83	486.64	0.37	0.37
1993	46.40	496.60	515.57	0.41	0.41
1994	48.29	521.35	541.10	0.41	0.41
1995	48.50	570.65	590.80	0.42	0.42
1996	47.91	632.05	652.45	0.43	0.43
1997	48.99	703.49	724.41	0.43	0.43
1998	51.35	750.92	772.97	0.43	0.43
1999	53.31	836.98	859.98	0.43	0.44
2000	54.78	948.22	971.79	0.43	0.44
2001	56.63	812.12	835.55	0.41	0.42
2002	55.20	750.79	772.86	0.40	0.40
2003	53.79	690.95	710.03	0.35	0.35
2004	52.64	773.66	792.33	0.35	0.35
2005	57.28	871.71	892.37	0.36	0.36
2006	73.48	943.88	970.76	0.37	0.37
2007	78.43	1038.80	1067.85	0.37	0.37
2008	80.42	961.23	989.80	0.36	0.35
2009	72.43	753.42	778.97	0.35	0.35
2010	73.48	842.06	868.14	0.36	0.35

Amounts in billions of nominal dollars after refundable credits.
Static revenue effect of taxing municipal bond interest at regular rates under the US Individual Income Tax assuming the taxable yield is 1.29 times tax-free yield.
Ignoring cross deductibility of state income tax.

Source: https://www.nber.org/taxsim/municipal-bond-subsidy-rate
25 August 2016