Legislation introduced by Sen. Ron Wyden, D-Ore., would require pension plans to pay taxes on gains from their investments in gas and oil commodities and would force hedge funds and other speculators to pay ordinary taxes on their oil and gas trading profits.
Congress will have a fight on its hands if it goes ahead with legislation that would for the first time require pension plans to pay taxes on gains from their investments in gas and oil commodities, pension fund executives said.
At issue is S. 1588, the Stop Tax Breaks for Oil Profiteering Act of 2009, which was introduced by Sen. Ron Wyden, D-Ore., on Aug. 6.
In an Aug. 6 statement on the Senate floor, Mr. Wyden said his legislation, which has been referred to the Senate Finance Committee, is needed to help rein in speculation in energy commodities that he said has driven up the price of oil for everybody.
A summary of the bill released by Mr. Wyden's office blamed institutional investors for at least some of the price jumps.
"The STOP Act would end the free ride that institutional investors get on profits made from the high prices of oil and natural gas — prices that have been driven higher by the high volume of institutional investment. Without tax subsidies, big investors will invest less in oil and gas markets, which means that oil and natural gas prices can be expected to fall, saving consumers at the pump.”
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