Which Republican will defend Hedge fund tax exemptions

Discussion in 'Politics' started by Sactowndog, Jul 27, 2011.

  1. Sactowndog
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    Sactowndog Active Member

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    Okay one of the revenue enhancements in the gang of 6 plan rejected by Republicans is related to hedge funds managers.

    Currently hedge fund managers get paid two ways. They take a 2% administration fee off the top. This fee is typically taxed as income. The other fee is they charge 20% of profits. This 20% often makes up the bulk of their income. The 20% is taxed at the 15% capital gains rate and not the 33% marginal tax rate for income.

    The intent of the reduced capital gains tax is to encourage investors to undertake more risky investments. Hedge fund managers are getting this rate for managing other peoples money not for risking their own.

    The House Republicans will preserving the undeserved tax break at any cost. Will any Republican defend this position?
     
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  2. Old Rocks
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    Old Rocks Diamond Member

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    The whole of the GOP will defend this. After all, these people make huge amounts of money with out creating anything. That is the GOP ideal. Eliminates all those pesky people on the factory floor.
     
  3. Full-Auto
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    Full-Auto Gold Member

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    Is that why the treasury printed money out of thin air to bail out a foreign bank.

    Do you understand the term Quantitative Easing?
     
  4. Mr. H.
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    Mr. H. Diamond Member

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    If I understand it correctly, capital gains is the result of liquidating an asset- which may or may not be liquidated at a profit. Additionally, a capital gain may or may not be a tax preference item.

    Income is just income.

    Honestly I don't think you know what the fuck you're talking about.
     
  5. Patrick2
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    Patrick2 Senior Member

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    Hey! You're threatening Chelsea Clinton's income! :lol:
     
  6. Mr. H.
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    Mr. H. Diamond Member

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    "These people" are also known to lose huge amounts of money. Therein lies the "risk".
    It's funny- to liberals, there's money and there's not money. It's like the shit grows on trees or it doesn't.

    Money trees need water. Sometimes they bear fruit, sometimes they don't.
    If I take the risk of planting a money tree that may or may not flourish, I assume a risk. Yet- in the process I still have to hire people up front. I still have to invest money and assemble an infrastructure which is in itself quite expensive.

    So what's the big fucking deal?
     
  7. Old Rocks
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    Old Rocks Diamond Member

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    I have made money selling a property, and paid the neccessary taxes. I have lost money selling one, also. I paid no taxes, because it was a loss.
     
  8. Old Rocks
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    Old Rocks Diamond Member

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    Every day I go to work, I take the risk of being killed or injured on the job. Look up the risk for millwrights in steel mills. So at any time I could lose my only source of income. But I pay more taxes on that income than the guy that risks only his money, and, maybe, a paper cut.

    My heart bleeds, indeed, for your poor 'risk takers'.
     
  9. Mr. H.
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    Mr. H. Diamond Member

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    And that's a very good point.

    In selling your properties, the profit or loss was determined by the "basis" which takes into consideration improvements or devaluations of said properties. Additionally, your profit or loss may carry over into succeeding tax cycles depending upon your particular financial situation.

    The same holds true for hedge fund managers. Their holdings improve or devalue in a given time frame.

    So just multiply your personal experience by a bunch and you get the idea.

    That's what I like about you, O.R. You're honestly a really smart person, but in a sort of stupid kinda way. :D
     
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  10. Old Rocks
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    Old Rocks Diamond Member

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    Point is, why should that income be taxed less than the income made on a regular job?
     

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