According to the Daily Kos, one of the tax breaks upon which President Obama has focused is a provision that allows hedge fund managers — who make billions annually — to receive a substantial tax break. This particular tax break, known as the carried-interest loophole, allows hedge fund managers to treat the money they receive from investors as capital gains, subject to a 15 percent tax rate. Though this money is a paycheck received for services, just like a movie star receiving a bonus if her movie does well, it’s treated as investment income.
Since hedge fund managers are some of the richest people in the country, this tax break actually causes a significant loss of revenue. In fact, according to calculation by RJ Eskow, closing this loophole would raise more than $4 billion per year just from the 25 richest hedge fund managers.
It's like taking candy from the mouths of starving billionaires, if you'll pardon our mixed-up metaphor...
http://www.dailykos.com/story/2011/07/07/991873/-The-New-Class-War:-Closing-a-single-hedge-fund-loophole-would-earn-billions
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