The tax-exempt status of municipal bonds is being offered up in sacrifice to the nation's shameful budget deficit, again. A proposal to abolish exemption is being legitimized by the Federal Reserve bank of Boston, no matter that it would make local governments the thralls of Washington, D.C.

In the first serious assault since South Carolina v. Baker -- the heart-stopping Supreme Court ruling that placed exemption in the hands of Congress -- the Boston Fed's New England Economic Review published an article outlining a plan to do away with the municipal bond market.

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