N.Y. Gov. Says Hedge Fund Tax Won’t Pass

Aug 3 2010 | 12:26pm ET

New York Gov. David Paterson expressed confidence today that a proposed increase on taxes for hedge fund managers who work in the state but live elsewhere would not pass the state Senate.

Paterson made his prediction before the Senate was to vote on a plan to close the state’s $9.2 billion budget gap. Under the $50 million revenue-raising proposal, initially proffered by Paterson and passed by the state Assembly last month, hedge fund managers who work in New York but live in another state would have their performance fee income, or carried interest, subjected to New York state taxes.

The proposal was quickly pounced upon by Connecticut Gov. Jodi Rell, who invited New York’s hedge fund community—the world’s largest—to up sticks and move north of the border. Rell met with about 30 representatives of the New York hedge fund industry last night over dinner.

“Now Gov. Rell will have to find revenues from some other source,” Paterson told CNBC.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...