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The NPR article says "pushing a bill that would require members to divest individual stocks within six months of taking office and limit their investments to mu
by pledess 5y ago
The NPR article says "pushing a bill that would require members to divest individual stocks within six months of taking office and limit their investments to mutual funds." This new distinction (investment opportunities for members of Congress are different than investment opportunities for other Americans) creates a new conflict of interest for lawmakers who then must choose whether to invest in mutual funds instead of non-stock-related asset classes. https://www.cnbc.com/2021/09/16/democratic-plan-would-close-tax-break-on-exchange-traded-funds.html https://www.cnbc.com/2021/09/16/democratic-plan-would-close-... suggests that the Senate may soon consider a less favorable tax treatment of the use of in-kind redemptions by mutual funds. If senators perceive that their own stock investments will be limited to mutual funds or other funds (i.e., not individual stocks), then they may have a greater incentive to vote against this tax-law change, regardless of whether the change is good public policy.