The Dormant Commerce Clause and the Balkanization of the Municipal Bond Market (with Technical Appendix)

AEI's working paper series

Abstract

This report argues that the selective municipal bond exemption challenged in Davis functions as an import tariff in the municipal bond market by favoring within-state holdings of municipal bonds over interstate holdings. Observation confirms that the selective exemption has balkanized the municipal bond market and harmed investors. The recognized exceptions to the dormant commerce clause of the Constitution should not be extended to uphold the selective exemption.

Download file Click here to view the full document as an Adobe Acrobat PDF.

Alan D. Viard is a resident scholar at AEI.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Alan D.
Viard
  • Alan D. Viard is a resident scholar at the American Enterprise Institute (AEI), where he studies federal tax and budget policy.

    Prior to joining AEI, Viard was a senior economist at the Federal Reserve Bank of Dallas and an assistant professor of economics at Ohio State University. He has also been a visiting scholar at the US Department of the Treasury's Office of Tax Analysis, a senior economist at the White House's Council of Economic Advisers, and a staff economist at the Joint Committee on Taxation of the US Congress. While at AEI, Viard has also taught public finance at Georgetown University’s Public Policy Institute. Earlier in his career, Viard spent time in Japan as a visiting scholar at Osaka University’s Institute of Social and Economic Research.

    A prolific writer, Viard is a frequent contributor to AEI’s “On the Margin” column in Tax Notes and was nominated for Tax Notes’s 2009 Tax Person of the Year. He has also testified before Congress, and his work has been featured in a wide range of publications, including Room for Debate in The New York Times, TheAtlantic.com, Bloomberg, NPR’s Planet Money, and The Hill. Viard is the coauthor of “Progressive Consumption Taxation: The X Tax Revisited” (2012) and “The Real Tax Burden: Beyond Dollars and Cents” (2011), and the editor of “Tax Policy Lessons from the 2000s” (2009).

    Viard received his Ph.D. in economics from Harvard University and a B.A. in economics from Yale University. He also completed the first year of the J.D. program at the University of Chicago Law School, where he qualified for law review and was awarded the Joseph Henry Beale prize for legal research and writing.
  • Phone: 202-419-5202
    Email: aviard@aei.org
  • Assistant Info

    Name: Veronika Polakova
    Phone: 202-862-4880
    Email: veronika.polakova@aei.org

What's new on AEI

image Iranians celebrate the opportunity for change
image Edward Snowden is no hero
image Supreme Court's ruling on genetic tests will make a bad business worse
image Libertarian leanings on pot, same-sex marriage, and gun rights
AEI on Facebook
Events Calendar
  • 17
    MON
  • 18
    TUE
  • 19
    WED
  • 20
    THU
  • 21
    FRI
Monday, June 17, 2013 | 6:00 p.m. – 7:00 p.m.
Brainwashed: The use and misuse of neuroscience

Join New York Times columnist David Brooks as he engages the authors of “Brainwashed: The Seductive Appeal of Mindless Neuroscience” Sally Satel and Scott Lilienfeld, in a discussion of popular neuroscience.

Event Registration is Closed
Tuesday, June 18, 2013 | 9:00 a.m. – 10:15 a.m.
The next digital crossroads: Regulating competition in the Internet ecosystem

Please join us for a preview of the revised and updated edition of Jonathan Nuechterlein and Philip Weiser’s influential 2005 book “Digital Crossroads: Telecommunications Law and Policy in the Internet Age” (MIT Press).

Event Registration is Closed
Tuesday, June 18, 2013 | 5:30 p.m. – 7:00 p.m.
Economic liberty and human flourishing: Perspectives from political philosophy

At this event, three expert panelists will examine this relationship from the perspectives of influential philosophers such as Aristotle, Alexis de Tocqueville, and representatives of the Scottish Enlightenment.

Wednesday, June 19, 2013 | 9:00 a.m. – 11:00 a.m.
Neighborhood watch: A time to lead in the Americas

This event has been canceled. We apologize for any inconvenience. 

Event has been Canceled
Wednesday, June 19, 2013 | 12:30 p.m. – 1:45 p.m.
Is college worth it?

At this event, Bennett and Wilezol will present their book, higher education finance experts Richard George and Richard Vedder will provide discussion, and a coffee reception and book signing will follow.

Wednesday, June 19, 2013 | 3:30 p.m. – 5:30 p.m.
Is Big Brother watching you?

Join AEI’s Marc Thiessen as he hosts a panel discussion on the significance of the NSA leaks.

Thursday, June 20, 2013 | 1:00 p.m. – 2:15 p.m.
Balance: The economics of great powers from ancient Rome to modern America

Please join us for an event celebrating the release of Glenn Hubbard and Tim Kane’s “Balance: The Economics of Great Powers from Ancient Rome to Modern America” (Simon & Schuster, May 2013).

Friday, June 21, 2013 | 10:00 a.m. – 11:00 a.m.
Washington's ongoing assault on free speech: An address by Senate Minority Leader Mitch McConnell

In light of the emerging Internal Revenue Service scandal, Senator McConnell will again join AEI to comment on the use of government power to stifle speech and will propose solutions that protect the individual rights that are guaranteed to all citizens of the United States.  

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.