New York Proposes Increased Taxes On Hedge Funds

Dec 17 2008 | 1:51am ET

Facing a huge budget shortfall, the governor of New York is proposing a new tax on hedge fund managers.

Under the budget laid out by Gov. David Paterson yesterday, New York would expand nonresident income taxes to included hedge fund management fees. The measure, if passed, is expected to net the state $60 million.

Hedge fund managers living and working in the Empire State may also be hit by limitations on deductions for those earning more than $1 million, and a potential tax hike on the wealthy.

New York, which has been hit especially hard by the economic crisis—Paterson estimates that the state could lose 225,000 jobs—faces a $15.4 billion deficit over the next 15 months. The governor says the state could save more than $1 billion if the budget is adopted by March 1, a month earlier than the deadline, which New York has difficulty doing anyway: The state’s budget has only been passed on time twice in the past 20 years.

Paterson has proposed closing the budget gap with $7.2 billion in budget cuts and $4.1 billion in new or increased taxes and fees, including an 18% tax on sugary sodas and juice drinks.

Paterson took the state’s helm from former hedge fund bête noir Eliot Spitzer, who resigned as a result of a prostitution scandal in January.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...