WASHINGTON – Any discussion of altering the current tax treatment of municipal bonds injects uncertainty into bond markets and raises questions for investors who would demand risk premiums on future bond issuances, the nation's governors warned leaders of the Senate Finance Committee.

That’s among the points the National Governors’ Association raised to Senate Finance Committee Chairman Orrin Hatch, R-Utah, in a recent letter that expressed concern that tax reform might impose a cap on the value of tax exemption for municipal bonds. Hatch has asked for public comments on tax reform.

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