Senators Propose Higher Taxes For Funds Trading Commodities

Institutional investors such as hedge and pension funds speculating in commodity markets could face higher tax rates on their trading profits if a new proposal in the Senate gains momentum. Although the bipartisan proposal sponsored by senior members of the Finance Committee is highly unlikely to be passed before the August recess, there is a strong chance it would appear on the legislative calendar in the fall when Congress reconvenes. As lawmakers grapple with both legitimate solutions and the partisan politics of dealing with record high energy prices, many in the Senate and House have focused their sights on a multi-billion-dollar flood of investor money into the commodity markets in recent years.