WASHINGTON — President Obama’s $3.8 trillion fiscal 2013 budget alarmed the muni market by proposing to reduce the value of tax-exempt interest and other tax preferences to 28%. But he cheered market participants by proposing to resurrect and expand the popular Build America Bond program and ease several tax requirements.

However, there is virtually no chance the budget plan will move forward due to fierce Republican opposition and congressional gridlock, tax experts and market experts agreed.

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