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Rating:No Tax Break on Money Funds Not Rated 4.0 Email Routing List Email & Route  Print Print
Wednesday, January 8, 2003

No Tax Break on Money Funds

by: Sean Hanna, Editor in Chief

The Bush Administration plans to exclude dividends paid by money market mutual funds from its economic relief package. The revelation was made yesterday by White House chief economist Glenn Hubbard in an interview with the Wall Street Journal.

While the IRS technically considers current payments from money market funds as dividends any new tax law will be written to exclude those dividends from the proposed dividend tax exclusion by defining them as interest payments.  

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