INSTITUTE TESTIFIES ON IRA EXPANSION AND AVERAGE COST BASIS PROVISIONS IN PRESIDENT'S BUDGET

April 10, 1997 TO: BOARD OF GOVERNORS No. 26-97 FEDERAL LEGISLATION MEMBERS No. 6-97 PUBLIC INFORMATION COMMITTEE No. 11-97 RE: INSTITUTE TESTIFIES ON IRA EXPANSION AND AVERAGE COST BASIS PROVISIONS IN PRESIDENT’S BUDGET ______________________________________________________________________________ IRA Expansion On April 2, the Institute submitted testimony to the House Ways and Means Committee on the IRA expansion provisions in the President
s budget and on other IRA proposals. The Institute stressed the mutual fund industry
s primary focus on assisting Americans to invest for the long-term. Noting that a simple, universal IRA effectively encourages people to save for retirement, the Institute recommended that the Congress make a simple and permanent IRA available in as broad a form as possible. President
s Budget Additionally, in late March, the Institute presented its views to the House Ways and Means Committee on the revenue raising provisions in the President
s Fiscal Year 1998 budget proposal. Among other things, the Institute opposed requiring taxpayers to use the average cost basis method in determining capital gains. A copy of the testimony is attached. We will keep you informed of further legislative developments. Matthew P. Fink President Attachments (in .pdf format)