Senator Carl Levin wants the Internal Revenue Service to limit mutual funds' exposure to commodities because not doing so encourages speculation in oil and agricultural markets, Bloomberg reports.

Levin has reportedly pushed for the IRS to stop a private rulemaking process, which lets funds use foreign corporations and other strategies to escape the tax implications of boosting commodity holdings above 10 percent of assets.

“Those mutual funds in effect are allowed by the IRS to do indirectly what they cannot do directly,” Levin said at a news conference yesterday.  

Edited by: HFD


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