DISCUSSION OF the Impact of State Taxation on the Investment Portfolio of Banks.
研究了在联邦和州所得税并存下，银行通过借款购买免税债券的套利策略，发现扣除州所得税的银行更倾向于投资免税证券，并提出了未来研究方向。
Abstract The classic example of a clientele-based arbitrage strategy involves purchasing tax-exempt bonds with a loan that gives rise to tax-deductible interest in the absence of tax rule restrictions, taxpayers can eliminate theft explicit tax liabilities by investing the debt proceeds in tax-exempt bonds. This paper contributes to the important stream of recent empirical research, which examines the effect of tax policy on investment behavior. The author provide some additional analyses of the arbitrage strategy in the presence of both federal and state income taxes, include some suggestions for future research in this area. The hypothesis of the paper is that banks in deduction states invest more heavily in tax-exempt securities than banks in nondeduction states, depends on the viability of the arbitrage strategy. The author also presents some additional analyses of the issues involved in effecting this tax avoidance strategy and identify some issues that can be addressed in future research. In particular, the effect of debt-to-asset ratios on the marginal tax rates of banks investing in tax-exempt securities should be explored.