,,ii  #aaith ,,congress  #ast ,session  
,s4 #ahci  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #ba1 #bjbe
 ,mr4 ,cornyn introduced the following  
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend the ,internal ,revenue ,code
 of #aihf to allow individuals to defer 
recognition of reinvested capital gains 
distributions from regulated investment 
companies4  #a4  ,short title  ,this    
,act may be cited as the ,generating    
,retirement ,ownership through          
,long-,term ,holding4  #b4  ,deferral of
 reinvested capital gain dividends of   
regulated investment companies  7a7  ,in
 general  ,part ,,iii of subchapter ,o  
of chapter #a of the ,internal ,revenue 
,code of #aihf is amended by inserting  
after section #ajde the following new   
section3  #ajdf4  ,reinvested capital   
gain dividends of regulated investment  
companies  7a7  ,nonrecognition of gain 
,in the case of an individual1 no gain  
shall be recognized on the receipt of a 

capital gain dividend distributed by a  
regulated investment company to which   
part ,i of subchapter ,m applies if such
 capital gain dividend is automatically 
reinvested in additional shares of the  
company pursuant to a dividend          
reinvestment plan4  7b7  ,definitions   
and special rules  ,for purposes of this
 section-- 7#a7 ,capital gain dividend  
,the term capital gain dividend has the 
meaning given to such term by section   
#heb7;b77#c77;,c74  7#b7  ,recognition  
of deferred capital gain dividends  7,a7
  ,in general  ,gain treated as         
unrecognized in accordance with         
subsection 7a7 shall be recognized in   
accordance with subparagraph 7,b7--  7i7
 upon a subsequent sale or redemption by
 such individual of stock in the        
distributing company1 or  7ii7 upon the 
death of the individual4  7,b7 ,gain    
recognition  7i7 ,in general ,upon a    
sale or redemption described in         
subparagraph 7,a71 the taxpayer shall   
recognize that portion of total gain    

treated as unrecognized in accordance   
with subsection 7a7 7and not previously 
recognized pursuant to this             
subparagraph7 that is equivalent to the 
portion of the taxpayer's shares in the 
distributing company that are sold or   
redeemed4  7ii7  ,death of individual   
,except as provided by regulations1 any 
portion of such total gain not          
recognized under clause 7i7 prior to the
 taxpayer's death shall be recognized   
upon the death of the taxpayer and      
included in the taxpayer's gross income 
for the taxable year ending on the date 
of the taxpayer's death4  7#c7  ,holding
 period  ,the taxpayer's holding period 
in shares acquired through reinvestment 
of a capital gain dividend to which     
subsection 7a7 applies shall be         
determined by treating the shareholder  
as having held such shares for one year 
and a day as of the date such shares are
 acquired4  7c7  ,section not ,to apply 
to certain taxpayers  ,this section     
shall not apply to-- 7#a7 an individual 

with respect to whom a deduction under  
section #aea is allowable to another    
taxpayer for a taxable year beginning in
 the calendar year in which such        
individual's taxable year begins1 or    
7#b7 an estate or trust4  7d7           
,regulations ,the ,secretary shall      
prescribe such regulations as may be    
necessary to carry out the purposes of  
this section4  4  7b7  ,conforming      
amendments  7#a7 ,section               
#heb7;b77#c77;,b7 of such ,code is      
amended by adding at the end the        
following new sentence3 ,for rules      
regarding nonrecognition of gain with   
respect to reinvested capital gain      
dividends received by individuals1 see  
section #ajdf44  7#b7 ,the table of     
sections for part ,,iii of subchapter ,o
 of chapter #a of such ,code is amended 
by inserting after the item relating to 
section #ajde the following new item3   
,sec4 #ajdf4 ,reinvested capital gain   
dividends of regulated investment       
companies4  4  7c7  ,effective date     

,the amendments made by this section    
shall apply to taxable years ending     
after the date of the enactment of this 
,act4