Representative Paul Ryan, a Republican member of the House Ways and Means Committee from Wisconsin, has introduced legislation that would allow fund shareholders to avoid paying capital gains taxes until they sell fund shares.

The bill is intended to put an end to the current system in which fund shareholders must pay taxes on capital gains distributions even if they do not liquidate any of their fund holdings. Legislation making this reform was first introduced during the bull market after many fund shareholders received unexpected tax bills.

Despite the bear market mostly eliminating the issue, the ICI came out in support of the legislation.

"The mutual fund industry strongly supports Congressman Paul Ryan's bill, H.R. 1989. Congress now has a rare and extraordinary opportunity. By passing H.R. 1989, Congress can embrace an important change in the tax code. This is a simple and significant way for Congress to help mutual fund shareholders, said Matthew Fink, president of the ICI.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE