That's why the Institute supports measures to increase education savings, such as proposals to enhance state-sponsored 529 plans and education IRAs. Fourth, as growing numbers of Americans embrace investing as part long-term household savings, a reexamination of the taxation of capital gains is warranted. Many proposals have been made, including reduced rates and annual exclusions. Congressman Saxton has added to this mix by proposing that a fixed annual amount of mutual fund distributions be eligible for deferral if reinvested. Finally, an important industry responsibility is to make sure that the ongoing debate about the optimal structure of our trading markets serves fund shareholders.
Mutual funds are the means by which middle America participates in the equity markets.
We must do all that we can to enhance transparency and liquidity in our markets, and to make Congress' goal of a fair and efficient national market system a reality. Contrary to the prognosticators, neither fate is preordained. Our future will be determined by what we do. We must not stand pat. It calls for constant diligence and devotion to the standards of fiduciary responsibility.