WASHINGTON – It’s unlikely that any short-term fixes to the upcoming mini fiscal cliffs, including sequestration, will include significant measures that would curtail or eliminate tax-exemption. In fact, at least two legislative alternatives to sequestration being drafted by Democrats would actually make tax-exempt bonds more attractive by imposing a minimum 30% rate on individuals with adjusted gross incomes that exceed $1 million.

Instead tax proposals, such as the 28% cap on the value of tax exemption, could be worked into a larger deficit reduction plan later this year, according to Rep. Chris Van Hollen, D-Md., House Budget Committee ranking member.

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