WASHINGTON — Senate Finance Committee chairman Max Baucus wants Congress to consider alternatives to tax-exempt bonds in order to provide uniform subsidies for bondholders, and cites Build America Bonds as a good example.

“Tax-exempt bonds subsidize interest paid on such bonds by exempting the interest rate from tax. Currently, the value of this subsidy varies based on taxpayers’ marginal income tax rates,” the Montana Democrat said during a hearing Wednesday on tax reform and state and local tax policies.

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