Raskolnikov Testifies on Derivatives Tax Reform
Professor Alex Raskolnikov testified recently before a joint congressional hearing on tax reform and the tax treatment of financial products such as derivatives. Raskolnikov told assembled legislators and media that taxing financial derivatives in an efficient and effective manner is impossible without comprehensive tax reform. “Derivatives have been used to game every aspect of our tax system,” Raskolnikov added. “The taxation of financial instruments is in dire need of reform.” Senator Carl Levin asked Raskolnikov about the impact of simply plugging loopholes. “[Y]ou have been plugging loopholes already, and even for those that worked, people found new loopholes,” Raskolnikov replied.