May 8, 2026 – I have spent decades helping individuals and families build financial security. Over that time, one principle has remained consistent: the most successful investors are those who stay disciplined, invest consistently and focus on the long term.
Unfortunately, there is a provision in our tax code that works against that approach — quietly reducing returns and often catching investors off guard.
Today, mutual fund investors can owe taxes each year on capital gains that are automatically reinvested — without ever receiving the cash. In effect, they are taxed on gains they have not realized. Other investments, such as individual stocks or bonds, are generally taxed only when the investor chooses to sell.
That difference matters, and it creates an uneven playing field for millions of Americans.
The impact is not small. Roughly 40 million Americans own about $7 trillion in mutual fund assets in taxable accounts. These are not just high-net-worth investors. Many are everyday, middle-income households — families working to save for retirement, education or a future milestone.
In fact, the median U.S. household income is around $80,000 to $100,000, underscoring that these investors are squarely Main Street Americans. Over time, mutual fund ownership has continued to expand across a broad range of households.
The challenge is not just the tax itself — it is the long-term effect. Every dollar paid in taxes today is a dollar that no longer compounds. Over years and decades, that lost compounding can meaningfully reduce outcomes for investors. For example, a $10,000 investment over the past decade could have produced significantly more in after-tax value if those reinvested gains had not been taxed along the way.
There is a straightforward solution. The bipartisan GROWTH Act, championed by Reps. Beth Van Duyne, R-Texas, and Terri Sewell, D-Ala., would allow investors to defer taxes on reinvested capital gains until they actually sell their shares, aligning mutual funds with how other investments are treated.
This is not about eliminating taxes. It is about timing them appropriately — when investors have liquidity and have made the decision to realize gains.
It also supports what we know works: long-term investing, consistent saving and allowing compounding to do its job.
Some have asked whether this change would reduce federal revenue. In reality, taxes are deferred, not forgiven.
Over time, as investments grow, the eventual tax base may be larger — not smaller — because more capital remains invested and compounding.
Importantly, this is not a partisan issue. The GROWTH Act has bipartisan sponsorship because it addresses a practical problem with a practical solution.
Having met with members of Congress on multiple occasions, my message has been consistent: this is a commonsense fix with broad support.
With nearly 75 cosponsors from both parties, there is real momentum — but more lawmakers stepping forward can help move it across the finish line.
At its core, this is about fairness. Investors who are doing the right things — saving consistently and investing for the long term — should not be disadvantaged by how the tax code is structured.
The GROWTH Act offers a straightforward fix. It aligns tax policy with how people actually invest, supports stronger long-term outcomes, and helps more Americans build financial security.
This is a practical, broadly supported opportunity for Congress to act.
It simplifies the tax code and provides meaningful support to working families who are focused on getting ahead in today’s economy. At a time when affordability and financial stability matter more than ever, this legislation rewards disciplined investing, strengthens long-term savings, and allows Americans to keep more of what they earn.
It is a long-overdue fix — and one worth getting done.
Please call or email your member of Congress and ask them to cosponsor the GROWTH Act, or visit www.meederinvestment.com/growthact to learn more.
