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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

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

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

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.