Monday, November 5, 2007

Hedge Fund Tax Loophole

The following excerpt from a Krugman NYT column expresses my opinion.

Money influence on Senate:
"The most conspicuous example of this influence right now is the way Senate Democrats are dithering over whether to close the hedge fund tax loophole which allows executives at private equity firms and hedge funds to pay a tax rate of only 15 percent on most of their income.

Only a handful of very wealthy people benefit from this loophole, while closing the loophole would yield billions of dollars each ear in revenue. Retrieving this revenue is a key ingredient in legislation approved by the House Ways and Means Committee to reform the alternative minimum tax, something that must be done to avoid a de facto tax increase for millions of middle-class Americans.

A handful of superwealthy hedge fund managers versus millions of
middle-class Americans,€” it sounds like a no-brainer."

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