According to the NY Post he’s become Wall Street’s Public Enemy No. 1 — Dave Camp, a
Republican Congressman from Michigan
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
operations.
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
recovered.”
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….
.
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