Monday, 20 October 2014
Last updated 2 days ago
Apr 27 2010 | 2:35am ET
A top U.S. lawmaker is expressing confidence that Congress will close the so-called carried-interest tax loophole this year, potentially increasing taxes on hedge fund and private equity managers by billions.
Rep. Sander Levin (D-Mich.), the head of the House Ways and Means Committee, said the need to find new revenues has added impetus to the push to tax performance fees as ordinary income, rather than capital gains. The measure has been passed three times by the House of Representatives and is backed by President Barack Obama, but the Senate has yet to act on it.
But Levin said that is changing: House Democrats have been meeting with his Senate counterparty, Sen. Max Baucus (D-Mont.), and the head of the Senate Finance Committee has been more open to closing the loophole.
If it does pass, fund managers would pay the ordinary income tax rate of up to 35% on their performance fees, rather than the 15% capital gains rate.
“Why should the real estate manager of investment spay 15% or 20% and the waiter pay regular income tax?” Levin asked Reuters.
And that may only be the beginning of higher taxes on hedge fund managers and other high earners, according to Levin. The tax-writing chief predicted that the tax on dividends would rise from 15% to nearly 40%.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...