Democrats Eye Millionaire Surcharge To Replace Carried Interest Hike

Oct 5 2011 | 11:44am ET

The good news for hedge fund managers is that Senate Democrats are crafting a new version of President Barack Obama's jobs-creation bill that will eliminate his proposal to increase taxes on their performance fee income. The bad news is that they're likely to replace it with another levy that could hit hedge fund managers hard.

Senate Majority Leader Harry Reid is working to craft a bill to appease members of his own party, several of whom balked at some of the revenue-raisers Obama proposed to pay for the $447 billion plan. Among the provisions on the chopping block is the closure of the so-called carried interest loophole, which allows hedge fund managers to pay the much-lower capital gains rate on their incentive fee income, rather than the ordinary income rate.

Also under fire is Obama's plan to increase taxes on families making more than $250,000.

Instead, Reid is likely to propose a 5% surcharge on people earning at least $1 million a year.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

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 ...

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.