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US106 - Close the hedge fund manager tax loophole
| Stop allowing hedge fund managers to treat their income as capital gains. | |
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Description
Close the hedge fund manager tax loophole that allows hedge fund managers to treat money they receive for their services as capital gains, subject to a 15 percent tax rate, instead of being taxed at normal income levels.
Arguments
There is no justification for treating the performance-based compensation a hedge fund manager receives any differently than it is treated in any other industry. The "carried-interest" they claim as a capital gain is simply payment for their services, like any other income, and should be taxed as such. Closing the loophole would raise billions in revenue and end preferential treatment for some of our nation's wealthiest.
Counterarguments
With regard to carried interest associated with venture capital, real estate, private equity, I do not believe in raising taxes. It is a capital gain because those individuals do make an investment. I would treat capital gains as capital gains instead of trying to re-categorize them as normal income.
November 1, 2007, Interview with Michael Arrington
All income from whatever source should be taxed at the same rate and it should not be higher than 15%. Everyone should pay the same rate regardless of income level. The govt needs to stop buying votes by passing wealth transfer laws.
1 Topic
Discussion
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