The GROWTH Act Information

The Act

The Generating Retirement Ownership Through Long-Term Holding Act of 2025, or The GROWTH Act, aims to empower American investors by allowing them to defer capital gain taxes on mutual fund investments, promoting long-term savings and financial security.

Background

Investors holding mutual funds outside tax-advantaged accounts are taxed each year on fund distributions even if they don’t sell their shares, putting them at a disadvantage compared with other investors. The 2025 GROWTH Act would allow these investors to reinvest capital-gain distributions without incurring immediate taxes, helping protect their savings.

Empowering Mutual Fund Shareholders

This bill would let mutual fund investors postpone paying capital gains taxes until they leave the fund or sell their shares. By enabling investors to reinvest capital-gain distributions without immediate tax consequences, it would allow their savings to compound more effectively and encourage long-term investing—without the concern of surprise tax bills.

Take Action

Locate your members of Congress by clicking here. A friendly reminder, you have two Senators and one Representative.
Send their office a letter asking them to cosponsor the GROWTH Act.
Share your advocacy with your social media channels and verbally to friends and family who can also take action.

Reminder: You may send your letter to both Senators and your Representative. Keep your message clear and concise.

Let's make a change to help maximize your long-term investments!

For Your Convenience - A Sample Letter

Below you will find a sample letter to reach your local Congress members regarding support of The GROWTH Act. The highlighted portions below indicate where you need to fill in the appropriate information. Please note you may edit and change this language as you see fit.

Sample Letter:

Dear Senator/Representative [Insert last name],

Millions of Americans invest in mutual funds outside of retirement accounts. Under current tax law, long-term investors like me are taxed each year on earnings we have not withdrawn and on shares we have not sold, creating an unfair burden for individuals and families trying to build long-term financial security.

I am writing to respectfully urge you to cosponsor the Generating Retirement Ownership Through Long-Term Holding (GROWTH) Act (H.R. 2089, S. 1839). As a long-term investor in your State, I am focused on saving and investing responsibly to meet important financial goals, such as homeownership and retirement. However, the current tax treatment of mutual fund investments makes it more difficult for investors to plan for the future.

The GROWTH Act would:

Put money back in the pockets of long-term investors
Encourage greater long-term investment to help grow the U.S. economy
Allow investors to fully benefit from the power of compound returns

Passage of the GROWTH Act would allow investors, like me, to focus on long-term financial planning without facing unnecessary and unfair tax consequences. This legislation would help individuals and families build greater financial stability and security over time.

By cosponsoring the GROWTH Act, you would demonstrate your support for investors in [insert State] and your commitment to strengthening the long-term financial security of families in our State. I would appreciate your consideration and would welcome the opportunity to provide any additional information.

Best regards,

[insert your name]