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Fal ty, y . f 6. That is to say, mnicipalities can very reasonably take the position that since the income tax is not directly open to them, the proposal to tax salaries and bonds can in no sense be considered reciprocal unlesa mnicipaliti are given the opportunity to tap new sources of revenue to meet their higher costs, woatever these may be. For example, there is the possibility that state and federal buildings might pay service charges to the cities where located. Precedent has been established for this procedure by the Federal Housing Administration, which ia now paying service charges to a mumber of cities for rw:nicipal services provided to federally-bullt housing developments. Another possibility is to subject state and federal bonda to the minicipal tax on intangible personal property. Already mentioned 1s a third possibility-- local sharing of state-collected taxes. Thus, for minicipalities, whether minicipal salaries and bonds shoul be federally taxed, is a severly practical problem. A change in the present exempt status has been proposed, and municipal officials will want to consider carefully the various aspects of these proposals. The basic objective of any change should be more equitable taxation, and not merely the substitution of one set of inequities for another,