Double Exempt

No longer empt; no longer empt.

Your city wants to build something. Something big. Like a pool or a parking garage or an expansion to the presigous clown college in the area. To pay for it, the city council raises money by selling bonds. These bonds are aptly named municipal bonds.

To help improve demand for muni bonds (as their friends like to call them) and support these local projects, governments offer certain tax advantages. Specifically, interest earned on municipal bonds are exempt from both federal and state taxes.

That's the "double exempt" part. If you buy the Clown College Bond at 7% annual interest, that 7% you bring in every year doesn't get taxed by either the state or the federal government. "Gross is Net."

And that's the Clown College slogan as well.