Thank you, Mr. Chairman.
I agree it is important for the Ways and Means Committee to periodically review tax law related to particular industries to ensure it is consistent with other sections of the Code, advances in technology, and current industry practices.
I expect we will hear broad support today for some of the changes related to Regulated Investment Companies that have been proposed. It has been over twenty years since the tax rules related to RICs have been examined and revised. Ensuring the tax rules are modern and efficient will reduce administrative burdens and benefit millions of shareholders.
As we proceed, however, we should not lose sight of our Committee’s pressing responsibility to address the urgent, broader tax issues – such as the looming increase of the capital gains top rate from 15% to 20% and increase of the top rate on dividends from 15% to 39.6%.
These tax increases are just a short time away, scheduled to go into effect on January 1, 2011, and will have a dramatic impact on the very entities and investors we are discussing today.
Thank you again, Mr. Chairman. I look forward to the testimony of our witnesses.