The Dodge Is the Plumbing

Tommy: the IRS says the ETF tax dodge doesn't work. Dougie will dodge it differently. Scarf: every ETF swaps shares untaxed. The town wants untaxed swaps banned; the mayor notes that is every ETF, trillions of dollars' worth. Tommy learned something: the dodge is how every ETF works. Abe: one manager says the notice opens the door wider. Dougie on the exchange fund: seven years locked, pass.

The IRS warning will not end untaxed swaps of stock into ETFs: every big ETF relies on the same untaxed creation and redemption of units, a multi-trillion-dollar industry one lawyer says regulators will not kill, and one ETF manager argues the notice opens the door for well-designed deals; the old route, an exchange fund, defers the tax but locks the money up for seven years.

Starring

TommyDougieScarfTownsmanMayor DithersAbe