People investing for retirement in mutual funds should not pay capital gains taxes until those shares are sold, according to Senators Mike Crapo (R-Idaho) and Tim Johnson (D-South Dakota). To keep retirement savings earning more money for a longer period of time, the senators have introduced the GROWTH (Generating Retirement Ownership Through Long-Term Holding) Act, which the Investment Company Institute supports.

The GROWTH Act would, for the first time, treat mutual fund investors the same was as those who invest in the stock market and only pay taxes when shares are sold.

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