Interest: What Is It and How Should It Be Taxed?
June 22, 2007, House Ways and Means Committee Chairman Charles
Rangel (D-N.Y.) and Financial Services Committee Chairman
Barney Frank (D-Mass.) joined others to introduce legislation
that would ensure that investment fund managers who take
a share of a fund’s profits as compensation for investment
management services—known as “carried interest”—would
be taxed at the ordinary income tax rate.
In 2002, scandals at companies like Enron, Adelphia,
Tyco, and WorldCom cast a cloud over the accounting profession.
Every day seemed to bring new details of malfeasance. Investor
confidence in U.S. financial markets was severely shaken.
It was easy to wonder: Can any company be trusted? What
emerged from the scandals was a bill named after its two
chief sponsors, Senator Paul Sarbanes (D-Md.) and Representative
Michael G. Oxley (R-Ohio). Full
We Created Financial Statement Disclosure Overload?
is much discussion in the accounting profession regarding
the complexity of current accounting rules. A paper presented
by the major accounting firms said: “Rules increase
complexity and actually can decrease the meaningfulness
of information.” I
believe that the crux of the problem is this: There is just
too much disclosure. Financial reports, especially footnotes,
are too long. Full