|
|
"A comprehensive, collaborative elections resource."
|
Bobbing as the Taxman Weaves
|
|---|
| Parent(s) |
Issue
|
| Contributor | RP |
| Last Edited | RP May 17, 2010 10:38pm |
| Logged |
0
|
| Category | Proposed Legislation |
| Author | ANDREW ROSS SORKIN |
| Media | Newspaper - New York Times |
| News Date | Tuesday, May 18, 2010 04:00:00 AM UTC0:0 |
| Description | To the long list of new financial regulations that were once considered improbable but now seem possible, add this one: a tax rule that would treat the investment gains of partners in hedge funds and private equity firms as ordinary income rather than as capital gains.
Just a tax technicality? Far from it.
General partners at private equity funds, who take a cut of the investment gains they earn for their investors in the form of “carried interest,” have been paying federal taxes worth only 15 percent of that cut.
By contrast, most people in the top tax bracket pay 35 percent on their income — soon to be 39.6 percent.
The change in the tax law could hand the government nearly $25 billion in new tax revenue over the next decade while making a lot of rich people a little less rich.
Of course, even if the measure passes, Wall Street executives are ready: They’ve already begun devising clever new “structures” to skirt the tax change. |
| Share |
|
|
2¢
|
|
| Article | Read Full Article |
|
| Date |
Category |
Headline |
Article |
Contributor |
|
|
