Wednesday, 5 August 2015
Last updated 9 hours ago
Mar 18 2011 | 1:26pm ET
One of the namesakes of last year's financial regulation reform bill is proposing a big new tax on hedge funds and other financial firms.
Rep. Barney Frank (D-Mass.), now in the minority in the House of Representatives, has introduced a bill that would have hedge funds with more than $10 billion in assets, and other financial firms with more than $50 billion in assets, pay a collective $2.5 billion. The money would be used to save four housing programs that Republicans want to cut in an effort to slash the budget deficit.
Frank had proposed a similar levy to pay for his Dodd-Frank law, but it was dropped to win Republican support. It would seem to have a similarly slim chance of passing this year, with Republicans now in control of the House and in greater numbers in the Senate.
Frank's bill follows another bill introduced by a Democratic representative, Illinois' Jan Schakowsky, that would hit hedge fund managers personally. Schakowsky's bill would boost the top rate of tax in the U.S. from 35% to 49% for people who earn $1 billion or more.
The current tax code "fails to distinguish the merely 'well-off' from the 'super-duper rich,'" Schakowsky wrote in the Huffington Post.
Her bill, which has next to no chance of passing, would also increased taxes by at least 10% on everyone who earns at least $1 million.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…