Trajan
conscientia mille testes
One tax that should definitely be raised is the rate on carried interest for hedge funds and private equity funds. That rate is 15%, the capital gains rate. This is egregious and should be taxed as income. It is not capital gains and should not be taxed as such.
Carried interest is the fee a hedge fund or private equity fund manager makes when he generates profit on other people's savings. A typical fund charges 20% on the profits it generates for clients. So if a $1 billion hedge fund generates a 20% return, it takes $40 million in profits. That money is taxed at 15%, so the hedge fund manager's tax bill will be $6 million. However, if you are a CEO and you generate a salary plus bonus of $40 million, you are taxed at 35%, or $14 million. This is distortionary, and rewards speculative rather than productive behavior. The fund manager should be taxed at the same rate as everyone else.
This is one of the loopholes Obama proposes be closed. The Democrats should absolutely dig their heels in on this one.
whoa, I thought dodd-frank was going to change that....
oh wait its coming to me....a dinner at Le Cirque, a few hearty back slaps, a wink and nod for campaign pledges...( or sppt. for a spot on the Hollywood payroll) ...and....*woosh*