ICI Comment on Ways and Means Tax Reform Discussion Draft

Washington, DC, February 26, 2014—In response to the release of a tax reform discussion draft by Ways and Means Committee Chairman David Camp (R-MI), ICI released the following statement:

“ICI appreciates Chairman Camp’s goal of simplifying the tax code for Americans. Though we still are reviewing the details, an initial read of the Chairman’s draft bill reveals a number of provisions that would affect mutual fund investors, including tax treatment of 401(k) plans and IRAs, municipal bond interest, capital gains and dividends, and financial products. We will examine these closely, in particular the provisions related to retirement, to understand their interplay and overall impact on savers.

“Academic research and data show that millions of Americans benefit from the U.S. retirement system. ICI believes it is critical to Americans’ retirement security that any tax-reform measures preserve strong retirement savings incentives for all Americans.

“Household surveys consistently show Americans overwhelmingly support 401(k) plans, particularly the tax treatment that encourages them to think about long-term savings. We will carefully review this proposal and continue to work with policymakers to ensure that Americans have the necessary tools at their disposal to build and secure savings for their golden years, in a balanced system that includes Social Security, defined contribution plans like the 401(k), defined benefit plans, individual retirement accounts, and other savings.”