Legislation aimed at making U.S. mutual funds more attractive to foreign investors was introduced Monday in the House.
The proposed Tax Parity for U.S. Mutual Funds Act of 2020, H.R. 7772, would create investment products called international regulated investment companies, allowing investors access to U.S. mutual funds without triggering negative tax consequences.
The arrangement would remove the need for U.S. fund sponsors to create foreign-domiciled products, and would help level the global playing field, said Paul Schott Stevens, Investment Company Institute president and CEO, in a statement.
The bipartisan bill sponsored by Democrats Danny K. Davis of Illinois and Thomas Suozzi of New York and Republicans Kenny Marchant of Texas and Ron Estes of Kansas "represents a commonsense fix to current law at no cost to U.S. taxpayers," Mr. Stevens said.
Previous versions of the legislation did not advance in Congress.