According to the NY Post he’s become Wall Street’s Public Enemy No. 1 — Dave Camp, a Republican Congressman from
and chairman of the influential Ways and Means Committee. That’s because Camp is working on a huge
tax-reform proposal that would eat into the Street’s lucrative hedging
The draft covers a half-dozen changes in how hedging strategies are taxed, including imposing mark-to-market accounting for financial derivatives, changing the tax-basis calculations for these securities and preventing phantom income and deductions.
“A contributing factor to the 2008 financial crisis was the ability to hide and disguise potentially significant risks through Wall Street’s use of derivatives,” according to a committee summary of the draft proposal.
“The rapid growth and abuse of these derivatives contributed to an environment that led to the seizure of our financial system, from which the
US economy still has not fully
The proposal calls for taxes to be paid much sooner and often at higher rates than in today’s more favorable treatment. Wall Street’s lobbying firms are out in force early….