10. Tax Advantage
What a taxpayer’s obligations are and what they are not is stated in the Internal Revenue Code and Regulations. Every cent you owe, you are obligated to pay, and you are not obligated to pay what you do not owe.
Certain types of investment are more heavily taxed than others. There is nothing the matter with investing in state and municipal government bonds just because you do not pay any federal income tax on the interest. This is the law, and it works to the advantage of the investor in government bonds and incidentally makes it less difficult for the state and municipal governments to finance their operations. Investments with a tax benefit or tax shelter are more desirable in many cases for the investor than those without such a benefit or shelter.
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