This story appeared in Jim Hamilton's World of Securities Regulation.
A report issued by the Volcker Tax Advisory Board proposes the reform of mutual fund and carried interest taxation within the scope of a broad simplification of how the Internal Revenue Code taxes capital gains. The report comes against the backdrop of pending but stalled legislation that would reform the carried interest taxation of hedge fund and other asset managers. The Board is chaired by former Fed Chair Paul Volcker and includes former SEC Chair William Donaldson. The Volcker Board, officially the President’s Economic Recovery Advisory Board, has a mandate to simplify and reform the federal tax code.