WASHINGTON — Senior White House economic advisors have told state and local officials that tax-exempt bond interest is “off the table” and will not be part of the administration’s proposed 28% cap on the value of exclusions, deductions and other tax preferences for wealthy taxpayers, according to those familiar with the discussions.

“There is nobody at the White House who understands state and local financing,” said a market participant who did not want to be identified. “It was not a proposal put together by people at the Treasury who understand municipal bonds.”

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