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House Passes Tax Awareness Bill
Washington, DC, April 13, 2000 - The House of Representatives passed in early April H.R. 1089, the "Mutual Fund Tax Awareness Act of 2000," by a 358-2 vote. The bill directs the SEC to adopt a rule within 18 months of enactment to require improved disclosure in investment company prospectuses or annual reports of after-tax returns to investors. H.R. 1089 defers to the SEC about whether to list such returns on a pre- or post-liquidation basis, or both.
In his April 3 floor statement, House Commerce Committee Chairman Tom Bliley (R-VA) said that despite recent SEC action, H.R. 1089 is necessary to ensure that the agency’s regulations go into effect. Congressman Paul E. Gillmor (R-OH), the lead sponsor of the bill, noted "the responsible efforts of the mutual fund industry to improve after-tax disclosure" and commended the industry and the SEC for their forward-looking approach.
The Institute submitted testimony on after-tax disclosure in October 1999.