A high Senate Democrat has been circulating a proposal that may hit the quickly rising world of exchange-traded funds. Large cash managers are bracing for a combat.
Senate Finance Committee Chairman Ron Wyden’s proposal goals to tax ETFs’ use of “in-kind” transactions that at present avoids triggering capital-gains taxes. With such in-kind transactions, ETFs—bundles of securities that commerce on exchanges—switch appreciated inventory, bonds or different belongings to Wall Avenue intermediaries as an alternative of money.
https://www.wsj.com/articles/democrats-tax-proposal-takes-aim-at-etfs-11631717324?mod=rss_markets_main | Democratic Tax Proposal Takes Purpose at ETFs