US 网爆吃瓜 Markets Coalition opposes MODA reform
01 December 2017 New York
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The US 网爆吃瓜 Markets Coalition has opposed an amendment to the Modernisation of Derivatives Tax Act of 2017 (MODA) proposed by US Senator Ron Wyden.
Wyden鈥檚 proposed changes to the act in May as he believed it鈥檚 current form was 鈥渉opelessly antiquated, needlessly complex, and riddled with loopholes鈥�.
He added: 鈥淎s a result, sophisticated taxpayers may manipulate the timing or character of underlying investments or the derivative contracts themselves.鈥�
In his proposed reform, Wyden claimed his changes to the US 网爆吃瓜 Markets Coalition鈥檚 tax regime would make derivatives contracts simpler if there was just one timing rule, one character rule and, one sourcing rule.
Wyden argued that his amendment would 鈥淸Strike] nine code sections and streamline many others in the process. The bill would also introduce a general rule for capital hedging whilst scaling back in the current, complex straddle rules鈥�.
In a statement released this week, the coalition said that the tax treatment of
exchange-traded options is 鈥済overned by well-established rules that are relatively simple and easy to understand鈥�.
鈥淭he fact that the rules are old, is no argument for replacing them. Broad-brush reform of the nature represented by MODA 2017 will create new, untold complexities.鈥�
It added: 鈥淲hile we applaud Senator Wyden鈥檚 stated interest in 鈥榬adically simplifying鈥� the tax code to create 鈥榓 simpler, more straightforward tax regime,鈥� we respectfully believe that MODA 2017 would not advance this objective, but instead would create results that are neither simple, nor straightforward, nor fair, as applied to exchange-traded options.鈥�
Wyden鈥檚 proposed changes to the act in May as he believed it鈥檚 current form was 鈥渉opelessly antiquated, needlessly complex, and riddled with loopholes鈥�.
He added: 鈥淎s a result, sophisticated taxpayers may manipulate the timing or character of underlying investments or the derivative contracts themselves.鈥�
In his proposed reform, Wyden claimed his changes to the US 网爆吃瓜 Markets Coalition鈥檚 tax regime would make derivatives contracts simpler if there was just one timing rule, one character rule and, one sourcing rule.
Wyden argued that his amendment would 鈥淸Strike] nine code sections and streamline many others in the process. The bill would also introduce a general rule for capital hedging whilst scaling back in the current, complex straddle rules鈥�.
In a statement released this week, the coalition said that the tax treatment of
exchange-traded options is 鈥済overned by well-established rules that are relatively simple and easy to understand鈥�.
鈥淭he fact that the rules are old, is no argument for replacing them. Broad-brush reform of the nature represented by MODA 2017 will create new, untold complexities.鈥�
It added: 鈥淲hile we applaud Senator Wyden鈥檚 stated interest in 鈥榬adically simplifying鈥� the tax code to create 鈥榓 simpler, more straightforward tax regime,鈥� we respectfully believe that MODA 2017 would not advance this objective, but instead would create results that are neither simple, nor straightforward, nor fair, as applied to exchange-traded options.鈥�
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