July 27, 1995
TO: PENSION COMMITTEE No. 14-95
TAX COMMITTEE No. 28-95
RE: INSTITUTE STATEMENT ON MISCELLANEOUS TAX REFORMS
______________________________________________________________________________
Pursuant to this years consideration of tax legislation, the House Ways and Means
Committee has ben holding hearings on miscellaneous tax reforms. In the attached written
statement submitted to the Committee today, the Institute urges consideration of legislative
proposals that would:
repeal the "30 percent test" of Internal Revenue Code section 851(b)(3);
acknowledge that market competition has eliminated the need for legislation
requiring mutual funds to provide cost basis reports to redeeming shareholders;
expand the proposed nondiscrimination rules for cash or deferred arrangements
to cover salary reduction simplified employee pensions ("SARSEPs");
enhance the individual retirement account ("IRA");
modify the treatment of market discount on tax-exempt bonds held by regulated
investment companies ("RICs");
subject foreign investors in RICs to no more U.S. withholding tax than is
collected from foreigners who invest in U.S. obligations directly or through
foreign funds;
permit bank common trust funds to convert tax-free to one or more RICs; and
deny federal tax information to states imposing a pension source tax.
We will keep you informed of developments.
Catherine L. Heron
Vice President and Senior Counsel
Attachment