Any legislative attempts to boost the traditional tax-exempt bond market, as well as hikes to the top tax rates, could drive down demand for new tax-credit Build America Bonds, a Congressional Research Service report released this week said.

In a 17-page report outlining for members of Congress the various tax-credit bond programs, Steven Maguire, a public finance specialist at CRS, said that "congressional action that would enhance the traditional tax-exempt bond market," including passing a law creating a federal guarantee of municipal debt, could drive down demand for BABs. The report was dated April 16.

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