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Tim Geithner Interested In Taxing The Hell Out Of Hedge Funds

Hug-lover Timmy G., testifying today (does the guy's job entails something else than testifying at hearings?) before the Senate Budget Committee, proposed to enact a "carried interest" tax for hedge funds and PE managers - a move that could doublesome funds' taxes.

We again propose that the income earned on a so-called "carried interest" be taxed as ordinary income and not at preferential capital gains rates, so that private equity and hedge fund managers pay tax on their compensation under the same rate structure as average Americans.

Tim said he was encouraging the UK to adopt a similar move, which could raise $24 billion over 10 years. This comes in addition to the proposed "Financial Crisis Responsibility fee" to be imposed on the largest financial firms, and which will raise $90 billion over 10 years.

Geithner's Full Remarks