Muni yields are at their highest levels in years, offering significantly better compensation than in recent history. For example, let's say you're in the 35% tax bracket, comparing an 8% corporate bond to a 5.25% muni bond. Still, in 2024, municipal credit upgrades have outpaced downgrades by a ratio of 2.1 to 1, as of March 31, according to Moody's Analytics. The federal exemption for muni bond interestAmid the looming 2025 tax cliff and federal budget deficit, some experts also worry about the federal tax break for muni bond investors, Kozlik said. Although the exemption remained intact through TCJA negotiations, federal lawmakers enacted other changes that raised levies on muni bond issuers.

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Persons: Joe Biden, Donald Trump, Emily Elconin, muni, Sean Beznicki, Beznicki, Kozlik Organizations: Republican, Michigan Conservative Coalition, Reuters, muni, VLP Financial, VLP, House, American Locations: Novi , Michigan, U.S, Vienna , Virginia, refinance