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URL:  http://boards.fool.com/quottax-exempt-yield-1-combined-federal-and-12875367.aspx

Subject:  Re: tax-free vs. taxable investments Date:  7/10/2000  12:32 AM
Author:  yFool Number:  37296 of 121595

"Tax-exempt yield / (1 - combined federal and EFFECTIVE state marginal tax bracket) = taxable equivalent yield.

The effective state tax rate is the product of the marginal state tax rate and (1 - the federal tax rate)."

ahh thanks
just what i was looking for
i assume this is supposed to be marginal federal and effective state, rather than "effective state marginal" or else i am really confused.

likewise (1-the marginal federal tax rate)...

Tax-exempt yield / (1 - combined federal marginal and EFFECTIVE state tax bracket) = taxable equivalent yield.

The effective state tax rate is the product of the marginal state tax rate and (1 - the federal marginal tax rate)

pls let me know if i'm mistaken
thanks

y
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