REFORMING THE TAXATION AND REGULATION OF MUTUAL FUNDS: A COMPARATIVE LEGAL AN…

ABSTRACT Most Americans invest through mutual funds. An analysis of laws governing mutual funds shows that U.S. mutual funds are taxed less favorably and regulated more extensively than direct investments or other collective investments, including alternatives available only to the wealthy. The structure of U.S. regulation—of 70-year old proscriptive bright-line rules subject to SEC exem…