New tax reform legislation unveiled Tuesday by Sens. Ron Wyden, D-Ore., and Judd Gregg, R-N.H., would eliminate tax-exempt bonds beginning in 2011, change the tax exemption for state and local bonds to a tax credit, and prohibit the advance refunding of bonds. Market participants immediately announced their staunch opposition to the bill — whose sponsors said it is modeled after “the successful” Tax Reform Act of 1986 — and said it’s unlikely such a drastic overhaul of the municipal market would become law.