The Senate Finance Committee released a paper Wednesday containing tax reform options for economic and community development, including repealing tax exemption for all governmental and private activity municipal bonds, replacing tax-exempt bonds with direct-pay and traditional tax-credit bonds, and capping the value of tax-exemption.

The discussion paper includes options that would ease restrictions on tax-exempt bonds such as repealing the governmental ownership requirement for bonds used to finance airports, docks, wharves and mass commuting facilities, which was proposed in President Obama’s fiscal 2014 budget and was estimated to cost $4 billion over 10 years.

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