WASHINGTON — Municipal market participants warned Wednesday that they would fight any attempts by Congress or the administration to do away with tax-exempt interest for all new municipal bonds.

President Obama’s 18-member, bipartisan deficit reduction commission included the idea as part of an “illustrative proposal” in a 65-page report, called The Moment of Truth, that recommends sweeping reforms of the federal tax code and Social Security, as well as cuts in discretionary spending, and containment of health care costs.

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