Why is interest expense disallowed if it is incurred to purchase or hold tax-exempt obligations? A. If the interest was allowed to be deducted, a taxpayer could, under certain circumstances, borrow money at a higher rate of interest than the rate at which it is invested, to generate a capital loss carryover to future years when taxable income is higher. B. The taxpayer would realize a double tax benefit if allowed to have the proceeds from the tax-exempt securities not taxed and also deduct the interest for the debt to purchase or hold the tax-exempt securities. C. Interest expense is disallowed when incurred to purchase or hold tax-exempt obligations because it keeps taxpayers from being able to increase their future ordinary income while decreasing their current capital gain income. D. Interest expense is disallowed when incurred to purchase or hold tax-exempt obligations because the cost of these obligations is too high