WASHINGTON — Rep. John Tierney, D-Mass., plans to soon introduce a bill that would require all new munis to be taxable direct-pay bonds with a 25% federal subsidy rate — a proposal drawing a frosty reception from issuers and underwriters.

Tierney announced his plan on Monday as part of a broad tax-reform bill — the Tax Equity and Middle Class Fairness Act of 2011 — designed to save $60 billion by eliminating tax expenditures or preferences. The congressman hopes to garner Republican support for his bill, which could be introduced when Congress reconvenes in May, a staffer said.

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