Tax loopholes and billionaires

[tpsbmam]

So take a look at one of the tax loopholes that Congressional Republicans are refusing to close — even if the cost is that America’s credit rating blows up. This loophole has nothing to do with creating jobs and everything to do with protecting some of America’s wealthiest financiers.

If there were an award for Most Unconscionable Tax Loophole, this one would win grand prize.

<snip>

This carried interest loophole benefits managers of financial partnerships such as hedge funds, private equity funds, venture capital funds and real estate funds — who are among the highest-paid people in the world. John Paulson, a hedge fund manager in New York City, made $4.9 billion last year, top of the chart for hedge fund managers, according to AR Magazine, which follows hedge funds. That’s equivalent to the average per capita income of 184,000 Americans, according to my back-of-envelope calculations based on Census Bureau figures.

Mr. Paulson declined to comment on this tax break, but here’s how it works. These fund managers are compensated mostly with a performance bonus of 20 percent or more of the profits they make. Under this carried interest loophole, that 20 percent is eligible to be taxed at the long-term capital gains rate (if the fund’s underlying assets are held long enough) of just 15 percent rather than the regular personal income rate of 35 percent.

I had a tough time picking 4 paragraphs out of Nick Kristof's excellent Op-Ed today. The full Op-Ed is worth a read.

The Obama administration estimates that closing this loophole would raise $20 billion over the course of 10 years. But nooooooo, God forbid the ReTHUGS consider closing this one! Nope, let the little people pay -- THESE are their real constituents.

:grr: :grr: :grr: :grr: :grr:

[valerief]

1. The most important thing in the world is to make rich people richer.

Nothing else matters. Nothing.

[theoldman]

2. If it's salary it should be taxed at the 35% rate.

There is a big difference between salary and investment income. Did Mr. Paulson have a 100 billion dollar investment? Of course not.

[pansypoo53219]

3. the GOP NO MILLIONAIRE LEFT BEHIND

programs.

[Thav]

4. $4.9 Billion? With a B?

Good God, what does one do with all that money? That's the equivalent of $559,000 an HOUR. He makes ten times my entire yearly salary in one hour.

You could fund 2/3 of my state's budget and still have an obscene amount of money left over!

I think the legislature needs to re-examine why personal income taxes were put into place in the first place - it was due to the obscene incomes that the moguls of that age were making, without contributing back to society.

I bet this douchenozzle thinks he needs $7 billion a year to be "rich." Or in Mitch McConnell terms he's "so-called-wealthy." I've got my torch and pitchfork, when do we storm the castle?