Compelling State Interest is an article. This article is argues
about strict scrutiny and equal protection cases.
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National Interest of the State
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Debit cash Credit interest income
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The answer is not dependent on the state it is dependent on the
underlying contract that created the debt. However, each state may
have caps on the interest rate.
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The interest that you receive on treasury bills and bonds is tax exempt income for state and local taxes.
In some states interest earned on specified state and municipal obligations is exempt from both state and federal income tax: