Subject: File No. S7-35-11
From: Robert J Holzschuh
Affiliation: ISM, PMAP, Operations Manager, retired.

September 1, 2011

Based on the comments I have seen on this issue following in the WSJ article website alone, there is substantial confusion as to exactly what it is you are proposing. From what I have read, I can give the following opinion. If you want to take a closer look at the companys excluding themselves from the tax requirement as to the range of business activities they are involved in and what they are bundling in the asset backed securities, then I feel that would only benefit and protect the investment comunity as a whole. But, if you are attempting to take away the tax exempt status from issuers of mortgage backed securities,to prevent investors from receiving a high dividend then you will be eliminating a significant source of revenue for investors, more importantly retired investors trying to supplement Social Security, and the revenue stream to the government generated from these investors paying taxes on these investments. In conclusion, the government can not afford to take away this dividend income desperately needed by retirees in this current poor economy who in return contribute a significant revenue stream in taxes from these dividends paid to the current deficit stricken government.