House Committee Evaluating REIT Tax Exemption  First munis, now
REITs. Income investors increasingly have to keep one eye on
Washington as the government continues to re-examine, and in
some cases challenge, existing tax-exemptions that apply to
certain investments. A.D. Pruitt reports in today’s Wall Street
Journal that the House Ways and Means Committee is taking a new
look at how real-estate investment trusts are taxed as part of a
broader hunt for ways to raise revenue by closing some tax
loopholes:  Industry officials and analysts say it is unlikely
that REITs will lose their tax exemption because it doesn’t
result in a major loss of revenue to the Treasury. They point
out that REIT dividends are taxed at a higher rate than other
corporate dividends, 39.6% versus 20%.   Industry officials also
note that the first REITs were established to give individuals
an easy way to invest in income-producing real estate. If they
lost their tax exemption, they would likely pay lower dividends
and act more like other