Monday, March 4, 2013

Proposed Tax Legislation Will Raise a Lot of Eyebrows On Wall Street and in Board Rooms

Author: David Schwartz J.D. CPA
These loopholes are bad policy even in the best of circumstances, but it would be unconscionable to allow them to continue if we can use revenue from closing them to avoid the devastating effect sequestration would have on national security, homeland defense, law enforcement, public safety, education and other important priorities. Sen. Carl Levin (D-MI). 

Amid last week's face-off between the White House and Congress over sequestration, Senators Carl Levin (D-MI) and Sheldon Whitehouse (D-RI) introduced the Cut Unjustified Tax Loopholes Act, also known as the CUT Loopholes Act, or S. 268.  The bill is aimed at curbing offshore tax abuses and strengthening tax enforcement, but also seeks to end excessive corporate tax deductions for stock options, close the blended tax rate loophole for derivatives, and end the carried interest loophole.  These provisions are popular among American voters, but are sure to raise some eyebrows on Wall Street and in US board rooms. 
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Saturday, May 12, 2012

U.S. Senate Hearing May Test Volcker Rule Concepts

Author: David Schwartz J.D. CPA
In a letter to Senate Banking Committee Chairman Tim Johnson (D-SD), Senator Bob Corker (R-TN), a key member of the Committee, has called for immediate investigation into the details of the JPMorgan Chase & Co. trading losses. Senator Corker wants the committee to examine if the trades in question were bona fide hedging transactions or poorly managed proprietary trades, and wants to explore whether US taxpayers are fully protected from losses at major financial institutions. In addition, Senators Levin (D-MI) and Merkley (D-OR), authors of the Dodd-Frank Act's Volker Rule, have issued statements urging rapid adoption of Volker Rule regulations prohibiting hedge fund investments by large financial institutions being disguised as risk mitigation or market making.

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