Washington (Sept. 6, 2002) -- A new study of mutual funds and their shareholders demonstrates the central importance of taxation in reducing investor returns, according to Joint Economic Committee Chairman Jim Saxton said. The 304-page study, Taxes in the Mutual Fund Industry, released by Lipper Inc., supports the previous findings of JEC staff studies on the same subject.

"The new Lipper study shows the powerful corrosive impact of taxes on mutual fund investor returns," Saxton said. "According to an analysis provided in the Lipper study, 'almost 23 percent of a taxable investor's returns were lost to government coffers.' As the study also points out, this can reduce the return on a $10,000 investment by a staggering $91,702 over 30 years.

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