WASHINGTON — Washington State Treasurer James McIntire is urging the Internal Revenue Service not to adopt its proposed issue price rules, warning they would increase issuers' borrowing costs.

"We firmly believe that the current rules, coupled with prudent IRS enforcement, are and will continue to be highly effective in achieving the interrelated goals of minimizing borrowing costs for issuers, minimizing arbitrage yields and minimizing the amount of interest income exempt from federal tax," McIntire wrote in a letter, dated Nov. 27.

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