Holding Wall Street Accountable And Protecting Taxpayers By Creating A Simpler, Fairer Tax Code: Financial Products Tax Reform
On January 24 Ways and Means Committee Chairman Dave Camp (R-MI) released a financial products discussion draft as part of the Committee’s broader effort on comprehensive tax reform that significantly lowers rates. The proposal seeks to modernize tax rules to minimize Wall Street’s ability to hide and disguise potentially significant risks through the abuse of derivatives and other novel financial products – an activity that was a contributing factor to the 2008 financial crisis. The discussion draft also outlines changes to tax rules designed to provide greater simplicity and uniformity.
The discussion draft consolidates several reforms that have been identified as necessary to provide more uniform tax treatment of financial products.