WASHINGTON — The Center for American Progress says any debt-limit agreement should contain expenditure cuts, including eliminating tax-exemption for private-activity bonds and making other new munis direct-pay bonds with a 25% subsidy rate.

In its “Good News on Deficit Reduction” report, released Thursday, the group said $23 billion can be saved over 10 years by eliminating the federal tax subsidy for private-activity bonds. It said $32.9 billion can be saved over the same period by moving from tax-exempt bonds to direct-pay bonds at the 25% rate.

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.