You may have heard something about how private equity managers are able to shield most of their income from ordinary income taxes, instead paying the 15% capital gains tax. The original bill in the House eliminated that windfall and required them to declare income from investments in which they have no financial stake as ordinary income. Now, the financial reform bill is in Congress, and ALREADY compromises have been made. This morning's Washington Post editorial (strangely and stupidly not available on their web site right now) lays out the latest deal -- only 65% of the income will be taxed as ordinary income, leaving the remaining 35% to capital gains.
These guys (yes, they're mostly guys) make gazillions, and their lobbying efforts are paying off, with stupid arguments about how this will hurt their incentives to take risks. The only risks they take are with their human capital by choosing to work as private equity artists, and I betcha they couldn't make as much money -- even fully taxed -- had they invested their human capital for 15 years to become a brain surgeon!
Now is the time for those of you in swing states (alas, Maryland is full of democrats who will vote for whatever the leadership agrees to) to contact your congressman or senator and demand that these private equity firm managers pay their fair share of taxes. Click here for directions on how to find out who your congressman or senator is, and how to contact her or him.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment