The mutual fund industry’s trade group today endorsed President Bush’s economic plan, which would totally eliminate federal taxes on stock dividends.

In a statement, Investment Company Institute President Matthew Fink said that the ICI supports Bush’s efforts "to provide investor relief from double taxation of corporate dividends."

Fink said that the ICI will also work with the president and Congress to increase contribution limits for IRAs and employer-sponsored retirement plans, expand "catch-up" provisions in the tax code that allow for those 50 and older to contribute more funds to their retirement, and make permanent tax-free treatment of qualified withdrawals from 529 college savings plans.

The goal is to benefit middle-class workers, many of whom own mutual fund shares, but earn "moderate annual incomes," Fink said.

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