WASHINGTON — While municipal bond market participants oppose President Obama's proposal to limit the value of tax-expenditures, including the muni bond interest exclusion, to 28%, Republican proposals would be even harsher, the Center on Budget and Policy Priorities said in a recent paper.

The paper, "Critics of Obama Tax Subsidy Proposal Miss Key Points," notes that both House Budget Committee chairman Paul Ryan, R-Wis., and House Ways and Means Committee chairman Dave Camp, R-Mich., want the top marginal tax rate reduced to 25%. "That would put the top subsidy rate for charitable donations and municipal bond interest three percentage points below the Obama cap," the group said.

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