"And I said, 'That's earned income, loser!'"
If Jeb Bush, Hillary Clinton, Bernie Sanders and Donald Trump agree on something, it must be a good idea, right? After all, one of those people is going to be our next president (although, in fairness, two of them are definitely not going to be our next president). Unfortunately, someone else not entirely likely to be our next president, Ted Cruz, and his ilk simply refuse to budge on the little matter of the carried interest loophole, which lets hedge and private-equity fund managers pretend that the money they make for making other people money is the same as the money they make for other people, for tax purposes. Well, if Congress can’t get its act together, the New York State Assembly will, proposing to do away with the injustice and make the state a tidy $3.7 billion a year at the same time. Of course, Assemblymen Sean Ryan and Jeffrion Aubry aren’t proposing tax-base suicide for the Empire State. But they are willing to bet that your average Hamptons-summering hedgie would rather pony up than live in such noted hellholes as Pennsylvania, Rhode Island or Florida. But be careful: You won’t have to push John Paulson too hard to accept a life of piña coladas on the playa.
The bill would make the tax increase contingent on the passage of corresponding legislation in Massachusetts, New Jersey and Connecticut, so that fund managers could not avoid the tax by simply moving to a nearby state.