Date:    06/03/2000  10:11 AM

Subject: S7-09-00

I own shares in mutual funds.  Since being rudely surprised by my tax 
burden on funds that have lost money, I have spent countless hours 
trying to determine which funds are tax efficient. I strongly favor this 
bill and feel that it is best for the standardized after-tax returns to 
be calculated assuming that distributions and gains on a sale of fund 
shares are
taxed at the highest applicable individual federal income tax rate. 
This will motivate funds to become concious of their portfolio turnover 
rates and will reward tax efficient funds and penalize tax inefficient 
funds.  Further more, although most mutual fund owners are in a lower 
federal tax bracket, the additional effect of the state taxes is not
reflected in your calculations.  By using the highest applicable federal 
rate, mutual fund owners will have a more representative picture of 
their returns after paying federal and state taxes.  (e.g. 12% for MA 
tax + 28% for Fed is 40%)
     
Monica  Pieper/ no affiliation -