The Investment Company Institute is planning to prioritize the legislative treatment of mutual fund capital gains following George W. Bush’s re-election.

"We do have an opportunity to debate the tax treatment of capital gains now," says Paul Schott Stevens, Investment Company Institute president.

The mutual funds capital gains have been proclaimed a priority by the ICI’s board of governors, the first attempt to lift the issue to the formal priority.

In the light of the rebounding of the markets, taxes that cut heavily into the gains of the mutual fund investors are coming to the forefront.

Previous legislation introduced on the issue lacked coordination. Among bills introduced on this topic was a bill sponsored by Rep. Jim Saxton (R-N.J.), according to which capital gains of $6,000 can be deferred for married couples and $3,000 for other filers.