WASHINGTON – Action by Congress to eliminate both the tax exemption for municipal bonds and the state and local tax deduction would cause the loss of $71 billion or 0.35% of total gross domestic product and about 417,000 jobs or 0.28% of total employment over the next decade, two government groups said Thursday.

The estimates were made in a study, called “Macroeconomic Analysis of Federal Tax Proposals Affecting State and Local Budgets,” that was prepared for the National Governors Association and The Council of State Governments by Moody’s Analytics.

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