Deficit reduction hawks Erskine Bowles and Alan Simpson have released a new, modified deficit reduction plan that would cut $5.2 trillion from deficits over the next decade and raise revenues in part by capping the value of tax-exempt muni bond interest, as well as other deductions and exclusions.

The “Bipartisan Path Forward to Securing America’s Future” released on Friday, which also considers repealing tax exemption for private activity bonds, builds on the recommendations made by President Obama’s 18-member 2010 National Fiscal Commission on Fiscal Responsibility and Reform. Bowles, former chief of staff to President Clinton, and Simpson, a former Republican Senator from Wyoming, spearheaded that group.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.