On 2/1/13 6:26 AM, Dave Sparro wrote:
municipal utilities: - sell bonds cheaper (holders get tax-advantaged rates in interest income, and are ultimately backed by the muni taxpayers)
Tangential to the private vs public screed: The ability to issue (and sell) tax exempt (T-E) bonds for any purpose is a given for governments in the US -- unless the government is that of a Federally Recognized Indian Tribal government -- where an "essential government interest" test applies. The history of the "essential government interest" test is rather sordid, but it resulted in only two bonds issued by any tribal governments for any purpose in 2010, none in 2011, and none in the first half of 2012. In any event, the "cost advantage" Dave cited, is not restricted to network buildouts by public entities funded by T-E bonds. Eric