WASHINGTON — ­Municipal market participants are still weighing the implications of a bill that would eliminate tax-exempt bonds and shift the muni market wholesale to a tax-credit subsidy, with many warning it would hurt state and local governments still recovering from the recession.

Sens. Ron Wyden, D-Ore., and Judd Gregg, R-N.H., on Thursday unveiled the Bipartisan Tax Fairness and Simplification Act of 2010, which would fundamentally remake the tax code, including how the federal government subsidizes debt issued by state and local governments.

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