ETF Industry Risks Losing Key Tax Edge as Democrat Whets Knife
- Senate Finance chief proposes ending famed ETF tax advantage
- Move could hit all ETF investors, alter U.S. fund landscape
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Amid the deluge of headlines in the past few days about congressional proposals to boost taxes on companies and the wealthy is one that would affect regular investors -- and potentially alter the entire U.S. fund landscape.
Draft legislation released by Senate Finance Committee Chairman Ron Wyden of Oregon on Friday featured a repeal of a key tax advantage for the $6.8 trillion U.S. exchange-traded fund industry. The move was tucked in along with a series of proposals to tighten tax reporting requirements around business partnerships, and wasn’t highlighted in Wyden’s accompanying press release.