WASHINGTON — Seventeen muni groups are urging members of Congress to reject President Obama’s proposal to place a 28% cap on the value of tax-exempt interest, warning it will hurt the market and that its retroactivity will reverse nearly 100 years of legislative history.

In a letter to House Ways and Means Committee chairman Rep. Dave Camp, R- Mich., and ranking minority member Sander Levin, D-Mich., the groups said the proposal will lead to “higher borrowing costs, less investment in infrastructure and fewer jobs.”

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