Municipal Bond Tax Exemption Seen Surviving Proposals for Curbs
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Two-thirds of the asset managers responding to a Citigroup Inc. survey said the tax-exempt benefit of the $3.7 trillion municipal bond market will remain unchanged.
Reducing or eliminating the amount of muni-bond investment earnings that can be deducted from federal income taxes may be used to help reduce the U.S. deficit. President Barack Obama has proposed capping the value of itemized deductions at 28 percent, down from 35 percent.