Skip to main content

If Feds Don’t Want Extra Carried Interest Tax, New York Will Gladly Take It

And you won't be able to take cover in CT!
  • Author:
  • Updated:

"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.

New York Legislators Plan to Introduce Measure on Carried Interest Tax [NYT]


Tax on Carried Interest Moving Closer to Reality

A new proposal to tax carried interest as ordinary income was just attached to a larger tax and spending bill that could be voted on by the House as early as tomorrow.

Private Equity Fuming Over Carried Interest Tax Hike

For over three years, the private equity industry’s main lobbying group successfully fought against moves to increase taxes on carried interest. Then, Max Baucus and Sander Levin had to go screw it all up yesterday by slipping carried interest legislation into a big tax and spending bill.

Family Farm Exemption Discovered in Carried Interest Tax Hike

Leveraged buyout and venture capital firms are steaming over a new carve-out provision for family farms inserted at the last minute into the carried interest tax hike that passed the House at the end of last month.

joe manchin

We Regret To Inform You There’s Another Deal To Put And End To The Carried Interest Loophole

And regret even more to acknowledge it’s got about as much chance as every other bid to kill it.

Mnuchin Lampert

Hedge Fund Managers Forced To Find Creative New Way To Avoid Paying Taxes

The loophole in the carried-interest loophole is closed, for now.

Getty Images

Oh, Look, Another Doomed Proposal To Kill The Carried-Interest Loophole

A tale as old as time. Or, at least, as old as this website.

Bill ackman beach

Bill Ackman Takes Bold Position That He Should Pay More In Taxes

The people’s hedge-fund manager has had it with the carried-interest loophole.