Which Republican will defend Hedge fund tax exemptions

Sactowndog

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Jul 4, 2011
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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?
 
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.
 
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.

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

Do you understand the term Quantitative Easing?
 
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.
 
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?

Hey! You're threatening Chelsea Clinton's income! :lol:
 
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.

"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?
 
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.
 
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.

"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?

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'.
 
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.

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
 
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?

Are you aware that this tax increase would affect more than just hedge fund managers? Or does your class warfare rhetoric forget the fact that people who make less than $100,000 grand also benefit from this particular tax non exemption?
 
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.

"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?

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'.

You don't like it you are free to get a job managing OPM.
 
Point is, why should that income be taxed less than the income made on a regular job?

Fair question.

If you, an elderly solid aggregate, should take the proceeds from your regular job and use them to embark upon a financial endeavor that involves spending those very same funds in the pursuit of generating yet more income- then the act of that spending will fall into various categories depending upon IRS regulations. The deductibility of those expenditures are treated differently depending on the nature of the transaction.

Selling something such as your properties creates a taxable event. You may realize a gain, you may suffer a loss. That gain or loss is effected by the basis or your original investment. The "basis" is determined by whatever improvements (or expenses) you have made or incurred during the course of owning that asset.

Hedge fund managers may take that 2% "off the top" without lifting a finger. Yet, they do in fact have expenses such as office, administrative, overhead, etc. So let's give them that deduction as an ordinary expense.

If, (assuming the OP ain't talking out his ass) these same hedge fund managers charge 20% of profits then that particular income is taxed differently because there does exist a certain element of risk. The risk is- there may very well NOT be a profit from which they can make their charge.

And like I stated earlier- these same managers often bear the brunt of losses.

So there's the rub- that 15% capital gains rate as opposed to the 33% marginal tax rate of income.

Does that make sense? I hope it does becuse I just spent 40 minutes typing this shit.
 
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.

"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?

So the risk you are referring to is no different than job risk and whether someone receives a bonus or not. The have 2% which has no risk and a bonus based on profits.....

Why should you pay income taxes at 33% on your bonus and they pay 15% on theirs.

Again they are not risking their own capital here. They don't invest money.

Come on Republicans. if you are going to hold up the entire country over crap like this I would hope you would have a better argument.
 
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.

"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?

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'.

Yeah except they aren't even risking their own money. They are paying capital gains taxes from their take of the gains on other people's money. If they don't make money they don't return dollars to the investors.
 
Do away with the Progressive Tax System. Institute a FAIR FLAT tax system. Everyone pays the exact same rate, no waivers, no exemptions, no loopholes.



Who would be against FAIR?
 
Hedge fund managers may take that 2% "off the top" without lifting a finger. Yet, they do in fact have expenses such as office, administrative, overhead, etc. So let's give them that deduction as an ordinary expense.

If, (assuming the OP ain't talking out his ass) these same hedge fund managers charge 20% of profits then that particular income is taxed differently because there does exist a certain element of risk. The risk is- there may very well NOT be a profit from which they can make their charge.

And like I stated earlier- these same managers often bear the brunt of losses.

So there's the rub- that 15% capital gains rate as opposed to the 33% marginal tax rate of income.

Okay so basically the 2% is equivalent to salary.

On the 20%, Hedge fund managers are not risking losing any money. It isn't their capital and if the fund loses money the loss is borne by the investor. The Hedge fund manager is more like a sales rep on commisssion whose salary varies based on being successful.

The only difference is the sales rep is paying 33% and the hedge fund manager thanks to House Republicans pays 15%.
 
I don't see how this is classified as Capitol Gains for the Hedge Managers. It is not their own personal wealth, they risk nothing tangible. Reputation as competent and customer loyalty is at risk, but not personal wealth.

For the investors, absolutely it is capitol gains.

ETA: How are realtors taxed?

ETA: Mr. H, I've read all you contributed to this thread and thank you.
 
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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?

Undeserved? How is getting taxed on Capital Gains undeserved, Komrade?
 

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