New York’s City Council is backing a plan to raise a $200 million per year tax on the investment income of hedge fund managers and private equity partners. Such a tax increase would have to be approved by lawmakers in Albany, but the council’s support makes it more likely to garner approval there, the New York Sun is reporting.
The new tax is meant to repair holes in the city’s budget, created in part by the downturn on Wall Street. As layoffs pile up and bonuses expectations diminish, the city is facing a dramatic fall in revenue. Of course, raising taxes on hedge fund managers and private equity partners is likely to drive them out of the city, according to critics.
The move is part of a broader push by lawmakers from Albany to Washington DC to tax “carried interest” as income rather than capital gains. Currently the city taxes management fees they at the 4% unincorporated business tax but that tax currently does not cover “carried interest.”
At least one group can expect to benefit from this tax threat: owners of commercial real estate and their agents in Connecticut.
Council Gets Set To Press a Tax on Hedge Funds [New York Sun]
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- Use the Bloomberg command
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This has Melinda Katz written all over it.
Under Obama, top marginal rates for anyone living in the city are already going to be 65% + (go do the math).
So how does it matter? Lets get into the redistribution scheme. Did wonders for USSR. Why not here?
And the stupid hippies (and their followers) love to point out that marginal rates were 91% till JFK cut them and yet things were ‘equal’ and ‘nice.’
What they forget is that in 1960, China was a communist dump, Russia was also a communist dump, people in Dubai were collecting camel dung, India was trying to figure out how to feed its people, Japan was trying to rehabilitate after the bomb and all of Europe was a rubble yard.
Try the same tax rates today and see how all the capital flees to all these countries – many of which are actively courting capital.
But then again, name a country that socialists didnt destroy. Why will they be any different here?
But for some reason we never hanged all the communists in this country for treason and aiding and abetting genocide – i.e. every democrat and RINO. Total BS.
“At least one group can expect to benefit from this tax threat: owners of commercial real estate agents in Connecticut.”
How do I buy me some commercial real estate agents?
“name a country that socialists didnt destroy”
you mean constitutional socialist states? not giving us much to work with. Egypt? Portugal?
in fairness to the bolsheviks, russia was already disaster when they took over. incidentally, india was pretty bad too if you were just a common village-dwelling wog.
We have followed the trotskyite pied piper of hamsteak to the gates of oblivion, and look what it has wrought us!
Its God’s way of normalizing things.
Countries like China and Russia needs to rise up. They have abundant human and natural resources and on that front nothing justifies their level of development as compared to the Western European and North American countries (sans Mexico).
They (C&R) went through painful bouts of socialist doom and are now becoming untra-capitalistic in their desire for a better quality of life. But that cannot be unless the latter countries get out of the competition. Those countries (NA and WE) are going to nicely self destroy though a coming round of inward looking socialism killing the very factors that took them there.
Especially America. Kill of trade entirely (I mean if the US doesnt want imports, then why should any other country allow GE, Boeing, Microsoft, Itnel, Time Warner, Caterpillar etc into their countries?
Then kill the primary instinct that built this country. The folks from Europe who got into the ships the head into the unknown, or the ones who pushed westward in the search of gold, oil etc didnt do it for ‘redistributing’ and ‘equalizing’ society. They did it for themselves. And that is the instinct which has carried on and made this a great country! The base European ‘instincts’ re not coming back – killing risk taking and ‘redistributing’.
So, as this country self-destructs – Russia and China will rise. By self destruct I do not mean that it will go the way of Africa. But it will rather become a second rate power – like UK – while those 2 countries call the shots.
Ironic but such massive success can only be internally destroyed.
“The proprietor of stock is necessarily a citizen of the world, and is not necessarily attached to any particular country. He would be apt to abandon the country in which he was exposed to a vexatious inquisition, in order to be assessed to a burdensome tax, and would remove his stock to some other country where he could either carry on his business, or enjoy his fortune more at his ease. By removing his stock he would put an end to all the industry which it had maintained in the country which he left. Stock cultivates land; stock employs labour. A tax which tended to drive away stock from any particular country, would so far tend to dry up every source of revenue, both to the sovereign and to the society. Not only the profits of stock, but the rent of land and the wages of labour, would necessarily be more or less diminished by its removal.”
-Adam Smith
10 Planks of the Communist Manifesto
1) Abolition of property in land and application of all rents of land to public purposes.
2) A heavy progressive or graduated income tax.
3) Abolition of all right of inheritance.
4) Confiscation of the property of all emigrants and rebels.
5) Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.
6) Centralization of the means of communication and transport in the hands of the State.
7) Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
8) Equal liability of all to labour. Establishment of industrial armies, especially for agriculture.
9) Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country, by a more equable distribution of the population over the country.
10) Free education for all children in public schools. Abolition of children’s factory labour in its present form. Combination of education with industrial production, &c., &c.[4]
——-
@ 1:26
Do you think anyone with the power to enact such laws (councelpersons, congresspeople, etc) have read Smith?
I’d put the chances of that somewhere between, say, slim and none, tops.
I blame the stinkin Christians!
Anal_yst, agreed. However, if you read 1:33 then it would seem that these people – especially when they are members of a certain political party – have most definitely read, internalized and memorized the entire Das Kapital.
How do you explain that?
Carried interest should be taxed. Listening to you cocksuckers whine while paying little or no tax makes me wanna puke. The worst part is most of you mother-fukers produce really shitty returns and always find someone else to blame for it. If you are to stupid to make it in this business (this includes paying proper taxes) then go fuck yourselves and take jobs as janitors at the prep schools where you went.
jean-marc@telluriancapital.com
This fund is in deep, deep trouble in our estimation. Who are these people and why would anyone put $ into this black hole?
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