Hillary Favors Tax Hike on Private Equity and Hedge Funds

July 16, 2007 |

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After taking some more time to mull over the tax hike proposal on private equity firms that go public, Senator Hillary Clinton has decided to join the crowd.  The NY Sun reported over the weekend that Senator Clinton is for a tax policy that eliminates the ability of private equity and hedge funds to pay 15% on income and replacing it with the corporate tax of 35%.  Given the headlines made by Blackstone Group recently, this debate is not unexpected, especially in an election year.  As with most politicians, its not the substance of the debate that I find bothersome, but the ridiculous comparisons that always seem to pop up …

“It offends our values as a nation when an investment manager making $50 million can pay a lower tax rate on her earned income than a teacher making $50,000 pays on her income,” Mrs. Clinton said in New Hampshire today according to a press release.

“As President I will reform our tax code to ensure that the carried interest earned by some multi-millionaire Wall Street managers is recognized for what it is: ordinary income that should be taxed at ordinary income tax rates,” she said.

The same old tired comparisons between teachers and business people.  I wonder where Senator Schumer stands on all of this?

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