Date:    06/29/2000  8:41 AM

TO: RULE-COMMENTS at 03SEC
Subject: File No. S7-09-00

The disclosure of the tax consequences of investing in a mutual fund is a 
valuable piece of information for the individual investor. The complaint 
voiced by the industry that "We don't know what the investors tax rate is." 
can be solved very easily. Simply use Vanguard's approach of assuming the 
highest federal rate, currently 39.6% for dividends and short-term gains and 
20% for long-term capital gains, and ignoring state taxes. In evaluating 
alternative mutual funds we already have fee and charge disclosure. Adding 
tax return disclosure gives us another benchmark to make comparisons in our 
evaluation process.
     
A Foolish investor,
     
Stephen St. George