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ICI Outlines Measures to Simplify, Improve Tax Code in Statement to President’s Tax Reform Panel
Washington, DC, March 18, 2005 - In a statement recently submitted to the President's Advisory Panel on Federal Tax Reform, the Institute notes that certain provisions of the tax code make it difficult for mutual fund investors to save for long-term needs like retirement, education, and health care.
In January President Bush established a bipartisan panel to advise on options to reform the tax code to make it simpler, fairer, and more pro-growth to benefit all Americans. The Advisory Panel will consider a number of options for reforming the system and will submit a report to the Secretary of the Treasury by July 31, 2005. The goals of the Panel include simplifying federal tax laws and promoting long-term economic growth, and encouraging saving and investment.
In its statement, the Institute encourages measures that would:
- make permanent the retirement and education savings incentives enacted in the Economic Growth and Tax Relief Reconciliation Act of 2001 and the capital gains and dividend tax rate cuts enacted in the Jobs and Growth Tax Relief Reconciliation Act of 2003;
- allow mutual fund shareholders to defer the tax on reinvested capital gains until they sell their shares; and
- simplify the rules governing individual retirement accounts (IRAs).