Overall, federal government bonds don't provide much in the way of income these days and that doesn't factor in inflation, fees, and taxes.
Not exact matches
Taxable municipal
bonds The interest on some municipal
bonds is taxable because the
federal government will not subsidize the financing of activities that
do not provide significant benefit to the public.
Bond income, in contrast, is deducted from corporate revenues as interest expense, and therefore
does not get taxed by the
federal government at the corporate level.
In short, the money spent purchasing
bonds as part of QE doesn't go to the
federal government.
Even though not all
government and municipal
bonds are completely exempted from tax filings, they
do provide some sort of
federal or state based tax benefits, thus offering you actually more profit from your
bond investment.
Private sector
bonds have a higher level of risk compared to
government (
federal, state, or local)
bonds, but they
do have better yields.
The
federal government does not tax most activities of states and municipalities, thereby giving most muni
bonds tax - exempt status.
The
federal government doesn't tax interest accrued through municipal
bond holdings.
Municipal
bonds are not taxable by the
federal government (some might be subject to AMT) and so don't have to pay as much interest as equivalent corporate
bonds.
Despite the typically bombastic campaign rhetoric by Trump to the contrary, I don't believe
bond investors as a group believe the
federal government is significantly more likely to default under Trump than it would have been under Clinton.
The
federal government and its agencies
do not sell municipal
bonds.