THE GENERATING RETIREMENT OWNERSHIP THROUGH LONG-TERM HOLDING ACT OF 2007 -- (Extensions of Remarks - June 20, 2007)
* Mr. RYAN of Wisconsin. Madam Speaker, I, along with Congressman Artur Davis and Congressman Joseph Crowley, introduce today the Generating Retirement Ownership Through Long-Term Holding (``GROWTH'') Act of 2007. This important bill gained the bipartisan support of 73 House colleagues in the 109th Congress. We introduce this important legislation in an effort to address one of the issues making it difficult for today's working investors to save for retirement.
* Most of our Nation's mutual fund shareholders report that retirement is the primary purpose for which they are saving. More than 31 million American households are saving through taxable mutual funds, either to realize a greater return on their savings, to supplement their employers' retirement plans, or because they do not have access to such plans. Seventy-two percent of fund investors say that their primary goal is to save for retirement. At the same time, almost half about 75 million of 155 million workers--are not offered any form of pension or retirement savings plan at work.
* Mutual fund investors are overwhelmingly middle-income Americans investing for the long term. For many of these investors, mutual funds are the low-cost, professionally managed, diversified way in which they are saving on their own for retirement. Currently, investors who buy shares in a mutual fund and hold for the long term find themselves taxed as they go--even though no fund shares were sold and no income was received. This legislation allows mutual fund shareholders to keep more of their own money working for them longer by deferring capital gains taxes until they actually sell their investment. The ``GROWTH'' Act makes it easier for these individuals to meet their goals and enjoy a secure retirement.
* Those investors who opt in advance to leave capital gains generated by the fund manager reinvested in the fund are doing what so many of us want to see--they are holding for the long term, contributing to national savings, and building up their own retirement nest egg.
* The GROWTH Act will encourage Americans to save more and to save for the long term to better prepare for a secure retirement. I urge my colleagues to join us in this effort and cosponsor this legislation.