Friday, 26 December 2014
Last updated 2 days ago
Apr 14 2010 | 11:08am ET
It seems necessity can be the mother of legislation. A proposal to more than double taxes paid by hedge and private equity fund managers on some of their income is gaining momentum.
The U.S. Senate is considering the so-called “carried interest” loophole, which taxes performance fees earned by alternative investment managers as capital gains rather than ordinary interest. Capital gains are currently taxed at 15%—rising to 20% next year—while income is taxed at a top rate of 35%, rising to 39.6% in 2011.
Sen. Charles Schumer (D-N.Y.) acknowledged yesterday that closing the carried-interest loophole is “one of the things being considered.” Despite the fact that the House of Representatives has passed the bill three times, it has yet to come to a vote in the Senate, where some Democrats are known to oppose the measure.
But the White House is pushing for the tax hike, and Sen. Max Baucus (D-Mont.), who heads the Senate Finance Committee, admits that a growing need for revenue—the proposal would raise $24.6 billion over 10 years—may have changed some minds.
Baucus has previously said he would tackle the carried-interest loophole only as part of a broad tax overhaul.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.