August 7, 1991
TO: FEDERAL LEGISLATION MEMBERS NO. 14-91
FEDERAL LEGISLATION COMMITTEE NO. 15-91
RE: HOUSE ANNOUNCES HEARINGS ON BILL TO REPEAL THE
30 PERCENT TEST
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The House Ways and Means Select Revenues Subcommittee has
scheduled a September 17 hearing on H.R. 2735, a bill that
includes repeal of the so-called "short-short" test, sponsored by
a bipartisan group of Ways and Means Committee members led by
Chairman Dan Rostenkowski (D-IL). The Institute is scheduled to
testify.
In addition to effecting the repeal of the 30-percent test,
the bill would require reporting of basis information to
shareholders on accounts opened on or after January 1, 1993, and
clarify treatment of reimbursed expenses.
In announcing the hearings, Subcommittee Chairman Charles
Rangel (D-NY) stated, "Mutual funds have experienced dynamic
growth since their inception in this country in the 1920s. In
the last decade, the combined assets of all mutual funds has
increased from $130 billion to over $1 trillion. They have
become the nation's third largest type of financial institution."
Chairman Rangel said his Subcommittee is considering the
bill because "some have argued that the tax treatment of mutual
funds and their shareholders has not kept pace with changes in
the industry."
Please call if you wish further information. We will keep
you informed of further developments.
This memo can also be found on FUNDS, the Institute's Fund
User Network and Delivery System, under Legislative Affairs,
Washington Update.
Julie Domenick
Vice President
Legislative Affairs