On November 5, the U.S. Supreme Court is scheduled to hear oral arguments in Davis v. Kentucky Department of Revenue—a lawsuit that threatens the continued existence of hundreds of single-state municipal bond funds, each of which holds a particular state’s bonds and caters to that state’s residents. The Supreme Court...

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FOR IMMEDIATE RELEASE: November 5, 2007

As the Supreme Court hears oral arguments today in Davis v. Kentucky Department of Revenue, AEI Resident Scholar and former Federal Reserve Bank of Dallas economist Alan D. Viard offers the...

Viard is available to comment on the possible ramifications of the Supreme Court case Davis v. Kentucky Department of Revenue.

Should interstate trade be restricted?

Viard critiques the recent U.S. Supreme Court decision in Kentucky Dept. of Revenue v. Davis, which upheld state income tax exemptions for residents' holdings of home-state municipal bonds.

Investors who are growing more concerned about inflation at last have a way to protect themselves against it, but--incredibly--they're ignoring it.

Municipal governments that grow raise the tax burden on their residents, and this in turn acts as a drag on both the future tax base and economic growth of the area.

State bankruptcy must serve to break the stranglehold of public-sector unions over state politics and budgets; help restore the federal government's precommitment against bailing out states; and advance, rather than distract from, the far more fundamental federalism reforms that will be required over the coming years.