Sanchirico: Camp’s Investment Tax Plan: Implications for Lower Rates on Capital Gains?

« Sanchirico Presents Optimal Tax Policy and the Symmetries of Ignorance Today at Duke |

Main
| Tax Foundation: Americans Pay 17.2% in Cell Phone Taxes »

January 31, 2013

Sanchirico: Camp’s Investment Tax Plan: Implications for Lower Rates on Capital Gains?

TaxVox Blog:  Camp’s Investment Tax Plan: Implications for Lower Rates on Capital Gains?, by Chris William Sanchirico (Pennsylvania):

House Ways and Means Committee Chairman Dave Camp (R-MI) has proposed requiring most derivatives investors to pay tax on their annual returns
even if they don’t realize their gains by selling their securities.
This proposal, which requires investors to mark-to-market the value of
financial derivatives, has ramifications far beyond the heady world of
high-tech finance. It implicitly challenges our most basic and firmly
held beliefs about why we tax investment gains the way we do.

Camp’s plan raises two key questions: First, should mark-to-market be
required for all investment assets, not just derivatives? Second, does
his proposal fracture one of the main justifications for taxing long
term capital gains at roughly half the rate on ordinary income? … Camp’s proposal is more than food for thought regarding derivatives.
It’s a four-course meal for fundamentally rethinking how we tax
investment gains.

January 31, 2013 in Tax | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c4eab53ef017d409fe233970c

Listed below are links to weblogs that reference Sanchirico: Camp’s Investment Tax Plan: Implications for Lower Rates on Capital Gains?:

Comments

Post a comment