Carried Interest Tax Hike Dead Again?

Oct 1 2010 | 3:36am ET

Its obituary has been written many times, only for the proposed tax increase on performance fees earned by alternative investment fund managers to rise from the dead. But, for the time being, another obituary is in order.

Lawmakers yesterday left Washington, D.C., without passing a provision that would close the so-called “carried interest” loophole. Under said loophole, hedge and private equity fund managers pay only the capital gains rate on their share of their funds’ profits, rather than the ordinary income rate, which is more than twice as high.

Democrats have sought to pass the measure for several years, and Treasury Secretary Timothy Geithner threw his weight behind the proposal earlier this year. But despite concessions made in the Senate version of the bill, Republicans held fast against it, killing it once again.

It is considered unlikely that Congressional leaders would seek to force the tax hike through after November’s election, when Republicans are expected to make broad gains.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.