Obama Pushes Carried-Interest Tax Hike, Republicans Say No

Sep 13 2011 | 1:48pm ET

President Barack Obama formally sent his proposed jobs-creation bill to Congress yesterday, one that would close the carried interest loophole and more than double the amount that hedge fund and private equity managers would pay on some of their income.

The president's plan would cost $447 billion, which would be used to cut the payroll tax and to pay for infrastructure programs. Obama would pay for it by raising taxes on the wealthiest Americans.

Among the key provisions is a plan to raise $18 billion by taxing alternative investment managers' performance fees as earned income, rather than capital gains. The former top tax rate is more than twice as high as the latter.

Obama has indicated that he would be willing to take his plan in pieces, with, for example, the payroll tax cut coming first. He may have to, as senior Republicans in Congress have indicated that the president's plans to raise revenues are all-but dead on arrival.

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Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…