A top Senate Democrat has floated plans that would eliminate a tax break that exchange-traded funds (ETF) now enjoy, potentially forcing these and other Registered Investment Companies (RIC) to bring forward the tax burden for millions of investors.
Sen. Ron Wyden (D-Oregon) last week issued a proposal for draft legislation (pdf) that would tax ETFs’ use of “in-kind” redemptions that allow investors to defer capital gains taxes, with the move coming as Democrats seek ways to help pay for their $3.5 trillion budget package.
