WASHINGTON — President Obama’s draft debt-reduction bill, if enacted, could destroy the tax-exempt bond market because of the uncertainty it would create about the value of tax-exempt interest for investors, said market participants, most of whom were aghast that the administration would even float such a plan.

Currently circulating among lobbyists and members of the congressional deficit reduction committee, Obama’s 284-page draft Debt Reduction Act of 2011 would require the Office of Management and Budget to set ratios for debt as a percentage of gross domestic product beginning with fiscal 2013.

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