Pevzner, Mikhail; Reinstein, Alan; Wynter, Matthew; … - In: Journal of accounting and public policy 51 (2025), pp. 1-26
Using California county-level data, we show that municipal bond yields became less sensitive to local real estate tax revenues following the cap on state and local tax (SALT) deductions imposed by the Tax Cuts and Jobs Act (TCJA). This effect is more pronounced in counties where taxpayers were...