Toward an Economic Model for the Taxation of Derivatives and Other Financial Instruments

Harvard Business Law Review Online, Vol. 3, p. 108, 2013

12 Pages Posted: 15 Mar 2013

Date Written: March 14, 2013

Abstract

On January 24, 2013, Congressman Dave Camp (R-MI), the Chairman of the House Ways and Means Committee, released the discussion draft of a bill that would tax derivatives under a mark-to-market system of taxation. This truly Copernican proposal would replace our entire federal system of taxing derivatives with a radically different but infinitely simpler model that would finally correspond to economic reality. If it were enacted, it would represent the most significant change in the history of our federal tax system. But, by shattering the realization paradigm, the Camp proposal suggests the possibility of something even more revolutionary: a fundamental reformation of our entire concept of taxable income.

Keywords: mark-to-market, derivatives, financial instruments, taxation

JEL Classification: E62, H24, H25, K34

Suggested Citation

Miller, David S., Toward an Economic Model for the Taxation of Derivatives and Other Financial Instruments (March 14, 2013). Harvard Business Law Review Online, Vol. 3, p. 108, 2013. Available at SSRN: https://ssrn.com/abstract=2233608

David S. Miller (Contact Author)

Proskauer Rose LLP ( email )

Eleven Times Square
New York, NY 10036-8299
United States

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