Senate Finance Committee Chairman Ron Wyden is looking to overhaul how derivatives are taxed as Democrats beginning crafting a giant spending bill funded in part by levies on the richest American businesses and taxpayers.
Wyden’s proposed legislation, which he has been refining for years, would require derivatives investors to pay tax annually on unrealized gains. It would also tax any appreciation at income-tax rates; President Joe Biden has proposed boosting the top marginal rate to 39.6% from 37%. Investors would be able to deduct losses.
