Early discussion in Congres and the pres regarding federal tax reform already has had an validity on the municipal bond market.

Early discussion in Congres and the pres regarding federal tax reform already has had an validity on the municipal bond market, and -- steady though a final resolution is at least couple years away -- it is not too early for local restraints to begin thinking about to what degree tax reform might affect them.

Investors in municipal links are cautious about the potential general intents of federal tax restructuring forward their tax-exempt portfolios. Municipal links whose price movements often track those of fixed-income securities, lagged considerably in early 1995 The principal reason is many buyer of municipal ligaments are worried that federal tax reform could wound their tax-exempt investments.

Investors' affairs may be premature. The national debate athwart tax restructuring will be a protracted one and surely will become tangled in the 1996 presidential campaign. Nevertheless, each of the tax reform ideas commonly circulating in Washington could have a fathomless effect ...