WASHINGTON — Though several deficit-cutting commissions are recommending Congress and the Obama administration overhaul the tax code and cut tax expenditures, such as the tax-exempt interest from municipal bonds, the head of the Tax Foundation said Tuesday that the budgetary cost of munis is relatively small.

Scott Hodge, president of the Tax Foundation, told members of the Senate Finance Committee at a hearing on tax burdens and benefits that state and local governments will only receive about $86.9 billion in federal tax benefits in fiscal 2011 from the deduction for state and local taxes and through tax-exempt munis.

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