Obama Going for the Hedge Fund Loophole

Not great for NYC? Seriously? What do you think people making that kind of money do with it? Spend it on Swedish-Built Yachts, houses in the Cayman Islands and stash it in off-shore accounts.

You going to feed me some "trickle-down economics" BS and tell me how they would be feeding it back to the local economy, but now it's going to be taxed instead?

Cry me an f'in river...

So, you're trying to claim that none of the earnings of hedge funders in NY is spent in NY?

This initiative has nothing to do with hedge funds per se, but everything to do with the Obama administration looking for anyway and every way to raise additional revenue while avoiding losing votes within their base. Earlier we heard of going after corporations and offshore profits, soft drink taxes, taxes on the wealthy, etc etc. Obama feels vulnerable on deficit spending and raises the tax issue periodically only to withdraw when he sees a particular target getting support.

I do believe this "reallocation" of profit taxed at cap gain tax rate rather than ordinary income is bull sh*t. Incentive fee or carried interest is an income, not cap gain. It has nothing to do with Obama or any one, just fairness to everyone.

Doesn't surprise me, as the US gov is hugely in debt AND sending tax revenues callously on wars and social reforms.

How PE and hedge fund investments were 'loopholes' are beyond me, as the DEFINITION of capital gains is profit from investment. This is not anti-business, it's more like the government going: hmm we need tax, so we're going to redefine things so we can tax you.

As much as I hate the social ideologies of Republicans, we really do need a Rep president...

Seriously, if it is beyond you, you should do a little reading on it. This applies to carried interest. How could it be an investment when they are not investing anything? You can make arguments from the perspective of how this will effect overall investment, but from a fairness perspective this is obvious and would be low-hanging fruit if not for the money at stake and the lobbyists hired to protect it.

Sorry to deflate deeply held beliefs but this was proposed before Obama was nominated by among others Chuck Grassley (prior to the time when working with dems or proposing any tax could get you thrown out of the republican party).

fact: this form of income for these fund entities has been mistreated for some time now as cap gains--totlly wrong and unfair, whatever side of the aisle one is on
fact: those that earn their incomes (work) at fund entities such as these spin and dance re the unfairness that their income be as income
fact: the very wealthey and younger, somewhat wealthy who work at these fund entities will earn less if this improper tax treatment is corrected
fact: many work in NY and will have less money to spend on real estate, very high-end real estate as well as middle market (still hi $) real estate here in ny

i have never been one to defend swe, and feel free to differ regularly with swe, but it seems, in this case he is merely pointing out the facts above...my facts of course

and btw this is not a redefinition, this is the correction of a mistreatment based on clear, existing defintions to which we are all subject--a mistreatment orchestrated (bought) at great expense (paid lobbyists) by the very wealthy entities who benefitted huuuugely from the exception

the only politics here is that these entities bought totally unfair favorable treatment for themselves

not a partisan issue

I am as conservative as they come when it comes to economic and tax issues but I actually have to agree with Obama on this one. There is no reason in my mind why carried interest (i.e., hedge fund profits) should be treated as anything other than ordinary income. Having said that, I think that taxes and spending should be cut but see no reason why carried interest should be treated as differently than ordinary income.

i think the message for redbaiter is:

please, for once, THINK

then post

Carried interest is supposed be for people who invest their capital. Hedge fund managers do not invest their own capital. It is simply ordinary income for providing a service.

the only intelligent people who would defend treatment of carried interest as cap gains:
those who earn caried interest in the course of their business
lobbyists who are paid to represent such a defense
scum politicians who have been bought off by said lobbyists

and redbaiter!!!!