Supreme Court Decisions to Have Limited Impact on Municipal Credits
Authors and Contributors
U.S. Municipal Bond Team
The U.S. Supreme Court rendered verdicts in two cases that could have broad implications on the municipal market: South Dakota v. Wayfair, Inc. and Janus v. American Federation of State, County, and Municipal Employees. The Wayfair decision, a ruling in favor of South Dakota, will allow states to assess sales taxes on online retail transactions. The Janus decision, a ruling in favor of plaintiff Mark Janus, prohibits public unions from requiring workers to pay union dues. While both decisions were close, decided by a 5-to-4 vote, the implications are significant for municipal credits, but the ultimate impact may be less than investors expect.
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