After-tax Basis
After-tax Basis means:
a basis for comparing the returns on a corporate taxable bond and a municipal tax-free bond.
Example of After-tax Basis:
Learn more about tax examples, explanations and calculations here.
A corporate bond paying 8% will have an after-tax return of 5.76% for some-one in a 28% tax bracket. Therefore any nontaxable municipal bond paying more than 5.76% will yield a higher after-tax return.
See Corporate Tax in the U.S. Legal Encyclopedia and Corporate Tax in the International Legal Encyclopedia.
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