Sens. Seek Tax Solutions For Free Emissions Credits

Law360, New York (June 16, 2009, 12:00 AM EDT) -- At a Senate Finance Committee meeting Tuesday, lawmakers pushed for clarification on how to handle the taxation of free emissions allowances under a cap-and-trade system, even as the Obama administration seeks to auction the credits.

While the White House has expressed its intent to auction the allowances, which would render the debate moot, it's still important to consider how a tax system for free allowances would function, said Sen. Charles Grassley, R-Iowa, the committee's ranking member.

Grassley said he was concerned about speculators who would try...
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