US - Pension funds would be forced to pay the same tax as commercial commodity traders under proposed legislation aimed at reducing speculative trading.
US senator Ron Wyden, a member of the Senate Finance and Energy Committees, and the ranking member of the Senate Finance Committee, Chuck Grassley, have proposed 'tax fairness' legislation which would see pension funds taxed on profits they make on the oil commodities market at the same rate as ordinary income.
Wyden said: "Essentially the current system is giving speculators tax incentives to bid up the prices of oil. We just don't think the tax code should favour one set of buyers and sellers over another. That is how markets get distorted."
Wyden and Grassley are seeking comments on their draft proposal.
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