©2006 Investment Company Institute. All rights reserved. Information may be abridged and therefore incomplete.
Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice.
[20037]
May 12, 2006
TO: SEC RULES MEMBERS No. 45-06
ACCOUNTING/TREASURERS MEMBERS No. 9-06
CEOS
TAX MEMBERS No. 14-06
PRIMARY CONTACTS - MEMBER COMPLEX No. 11-06
BOARD OF GOVERNORS No. 17-06
INVESTMENT COMPANY DIRECTORS No. 8-06
RE: CONGRESS ENACTS TOP ICI POLICY INITIATIVE
We are very pleased to inform you that Congress has finished work on a measure that includes one of
the Institute’s top legislative objectives -- a two-year extension of the 15% top tax rate for capital gains
and qualified dividends. President Bush has announced that he will sign the bill into law.
The new law (the “Tax Increase Prevention and Reconciliation Act”) extends through 2010 the
reduced tax rates that had been scheduled to expire after 2008. As you know, extension of these
reduced tax rates is a matter of consequence for both the broad securities markets and individual
investors. The Institute consistently seeks to promote public policies that encourage saving and
investment, and accordingly we have been strong advocates for this extension. Fund shareholders,
many millions of whom use taxable accounts to save for retirement and other long-term financial needs,
will benefit significantly from this legislation.
If you have any questions, please do not hesitate to contact me (at 202-326-5901), or Dan Crowley of
our Government Affairs staff (at 202-326-5962). We will keep you advised of developments on other
key legislation.
Paul Schott Stevens
President