May 21, 2025
U.S. Senator John Cornyn has introduced the Generate Retirement Ownership Through Long-Term Holding (GROWTH) Act, a bill aimed at helping Americans save for their futures by deferring capital gains taxes on mutual fund growth. Congresswoman Beth Van Duyne is leading the legislation in the House of Representatives.
“Deferring taxes on reinvested mutual fund capital gains distributions until the investor sells their shares is a no-brainer and would help provide parity with other investment options,” said Sen. Cornyn. He emphasized that this bill would allow Texans to extend their financial planning towards personal savings and retirement goals.
Rep. Van Duyne expressed her support for the GROWTH Act, stating, “This common-sense bill allows families to embrace American exceptionalism by giving them the freedom to invest in their future and secure their American Dream while working to achieve financial security and generational wealth.”
Congresswoman Terri Sewell also plays a role in advancing this legislation in the House.
The current law requires mutual funds to distribute realized capital gains annually, resulting in taxes for shareholders even if these gains are reinvested. The GROWTH Act proposes that investors only pay taxes when they sell their shares, aligning mutual fund investments with stock market practices.
The Investment Company Institute (ICI), representing asset management interests, supports this legislation along with the Chamber of Commerce and Americans for Tax Reform (ATR).
