It now appears that The One plans to raise the half billion dollars to pay for his
Jobs Bill latest spending frenzy by raising taxes.
Part of his plan is to limit the amount of interest from municipal bonds the evil, greedy “rich” can exclude from their taxable income. Of course, people invest in municipal bonds and are willing to accept a generally lower interest rate because the bonds produce tax-free income, and the tax-free feature permits municipalities and other government entities to raise money at low interest rates.
So, if evil, greedy “rich” can no longer fully realize the tax-free feature of the bonds, they may decide not to invest as heavily in them, which means that it will be more difficult for municipalities to sell the bonds without raising the interest they have to pay to investors. And, if they can’t sell bonds, maybe they’ll have to lay off teachers and municipal workers.
Obviously, The One has thought this through. He can use the money that the government seized from municipal bond investors to “save” the jobs of municipal workers who will be laid off because the evil, greedy “rich” didn’t buy municipal bonds.