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US Treasury flags Wall Street tax strategies as potentially abusive, Bloomberg News reports
Officials said some tax-aware products may be abusive as wealthy investors increasingly use them to cut liabilities.
- On Wednesday, Treasury Secretary Scott Bessent warned the Treasury Department will not tolerate abusive tax strategies, stating tax rules "should reward investment, not abusive financial engineering."
- The Treasury is scrutinizing Wall Street tax products including 351 conversions and box-spread ETFs, as popularity of these tax-aware strategies has grown among wealthy investors seeking reduced liabilities.
- At a Wall Street Tax Association seminar earlier this week, Kevin Salinger, deputy assistant secretary for tax policy, said the department is not seeking to be "over-broad or disruptive" but will not ignore "aggressive planning."
- Officials stopped short of announcing new guidance but expect "a serious dialogue with the market before positions harden" to prevent investors from facing increased financial risk.
- Treasury officials continue evaluating available tools to address these strategies while advising investors to be skeptical of any tax pitch that sounds "too good to be true.
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Treasury Officials Call New Tax Alpha ETFs ‘Too Good to Be True’
Turns out there is such a thing as being too tax-efficient. Treasury Department officials are reportedly voicing their concerns over several new Wall Street tax strategies that are saving investors from potentially paying billions of dollars in capital gains tax. The officials called some of the new funds “too good to be true” and even “abusive” at an event on Tuesday, per a Bloomberg report, including the increasingly popular 351 conversions t…
·New York, United States
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Treasury Flags Concern Over ‘Potentially Abusive’ Tax Trades
·New York, United States
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In publication in X, Bessen said that tax rules "must reward investment, not abusive financial engineering"
·São Paulo, Brazil
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Coverage Details
Total News Sources12
Leaning Left1Leaning Right1Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 20%
C 60%
R 20%
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