A Call to Action:
What You Can Do to Support
the Growth Act
A bipartisan bill gaining ground in Congress would provide a
sensible way for tens of millions of Americans—most of
them middle class—to
help secure their financial futures.
The Growth Act of 2007, H.R. 2796 and S. 2126, would allow investors who are building long-term
savings in taxable mutual fund accounts to defer taxes on capital gains
automatically reinvested in their funds. As a mutual-fund shareholder,
you need to let your Members of Congress know you support this important
What’s At Stake
A larger and larger share of the workforce is—and will
more and more on personal savings to fund their health care, college
education costs, and retirements. This means Americans need to start
saving earlier and keep at it throughout their working lives, while time—with
the power of compounding—is on their side. Congress needs to encourage
people to find ways to do so.
Modifying the tax treatment of mutual fund shares so that reinvested
gains are allowed to grow until shares are sold rather than shrinking
with annual tax bites would help the broad spectrum of American mutual
fund investors saving for long-term needs. By keeping more of their money
at work for longer periods, the Growth Act would encourage long-term
savers to automatically reinvest and to make additional investments.
Building an even stronger investment ethic in America would boost the
overall economy as well. Finally, the Growth Act would align tax law
with the popular understanding that capital gains taxes on an investment
should not be due until you sell the investment.
Send a personal
letter to your Members of Congress urging
them to support the Growth Act. Let them know it’s time to end
the mixed signals: If we say we want people to save more, let’s
not tax them when they do.
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