The annual
In 1999, investors paid a record $42.68 billion in taxes.
In 1999, fund investors had combined fund dividends and capital gains distributions of a record $187.6 billion, according to Liberty. That represents a 610 percent increase over the 1990 Liberty Index baseline investor tax burden of $7 billion on $41 billion in dividend and capital gains distributions.
The full magnitude of the 2000 tax burden on investors will not be known for awhile. But, total capital gains distributions from funds climbed 45 percent from 1999 to 2000, Liberty said. Not only did mutual fund capital gains payouts significantly increase, but many investors saw their earned incomes escalate, pushing investors into a higher tax bracket, said Jim Blakeslee, senior vice president and chief tax strategist for Libertys Wealth Strategies Group.