WASHINGTON — President's Obama $3.9 trillion fiscal 2015 budget, released Tuesday, proposed capping the value of the tax exemption for municipal bond interest at 28%, which market participants complain would amount to an unprecedented tax on municipal bonds.

The 28% cap, which he has offered in previous budgets, is similar to the 25% cap on the value of the muni exemption proposed by Rep. Dave Camp, R-Mich., in his draft tax reform legislation last week.

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