WASHINGTON — The Joint Committee on Taxation released its annual tax expenditure estimates showing $177.6 billion for public-purpose muni bonds over five years, while a governmental group urged President Obama and congressional leaders to “go big” on federal deficit reduction and rely on two reports that proposed curtailing or eliminating tax exemption for new muni bonds.

The 2011-2015 estimated tax expenditures were $54.5 billion for private-activity bonds, $24.4 billion for direct-pay bonds including Build America Bonds, and $1.8 billion for tax-credit bonds, according to the report by the nonpartisan JCT. However, sources pointed out that a law enacted in March 2010 permitted four types of bonds to be issued in either the direct-pay or tax-credit mode.

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