WASHINGTON — President Obama announced the framework of a plan Wednesday to shrink the deficit $4 trillion over 12 years, and urged House and Senate leaders to appoint teams to negotiate a final bipartisan plan by the end of June.

Obama’s plan would rely on tax-code changes and reforms for a savings of $1 trillion over the 12-year period. The broad initiatives the president laid out — expiration of the Bush income tax cuts for the wealthiest and capping itemized decisions at 28% for high-income households — would benefit municipal bonds, according to market participants.

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