Subject: File No. S7-35-11
From: doug b pearce
Affiliation: none

October 12, 2011

Good reits buy government gauranteed loans like fnma,fdmc,gnma and should be allowed higher debt to equity ratios.
Taxpayers pay income taxes on dividends earned and reits should earn money tax free as long as they distribute 90% of these earnings to investors
Taxing reits on earnings would be a double tax if you tax investors as well
Thanks Doug