Early discussion in Congres and the...

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

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

Investors' disturbs may be premature. The national debate through the whole extent of tax restructuring will be a prolonged one and surely will become tangled in the 1996 presidential campaign. Nevertheless, each of the tax reform ideas publicly circulating in Washington could have a abysmal effect ...