President Obama is not specifically targeting municipal bonds in his proposal to cap the value of tax exclusions and deductions at 28%, Jack Lew, his nominee for Treasury secretary, said Wednesday. At the same time he told lawmakers that tax reform will require “hard choices.”

Speaking to Senate Finance Committee members at his confirmation hearing, Lew, when asked about the cap, said: “It was intended to be a placeholder. We put it in as a fallback so that if tax reform doesn’t happen, this is how we can get the revenues we need.”

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