Rich Hedge Funders are manipulating everything now. The Fed Loves them so good luck on this
You are correct
Obama Wants Hedge Fund Tax Break Gone
by Ricardo Kaulessar , Reporter
Published:June 29, 2011
The discussions on raising the U.S. debt ceiling has included eliminating tax loophole that allows hedge fund and private equity managers to pay a 15% capital-gains rate on their earnings.
The “carried-interest” loophole issue has become in recent weeks a sticking point in the contentious negotiations between the White House and Congressional Republicans.
The White House has cited closing the loophole as one of several revenue-increasing measures that will be the difference in agreeing to budget cuts in order to get Republicans on board with raising the debt ceiling.
Instead of the 15%, hedge fund and private equity managers would pay income-tax rates of up to 35%. The White House has estimated doing this would contribute $400 billion in new tax revenue over the next decade.
Republicans opposes tax increases as well as any elimination of other corporate tax breaks for oil and gas companies and corporate jets.
President Barack Obama repeated his administration’s intention to nix the hedge fund tax loophole at a press conference Thursday, while criticizing Republicans for not seeking a “balanced approach” to dealing with the debt ceiling. Obama also said that those in the corporate world have benefited from the current U.S. tax structure.
“If you are a wealthy CEO or hedge fund manager in America right now, your taxes are lower than they have ever been,” Obama said.
Obama’s stance on the loophole dates back to February 2009, just after taking office when he proposed eliminating the carried-interest tax break.
But the issue, first raised in 2007, was put on the back burner as Senate Democrats and Republicans were concerned about losing their hedge fund manager donor base.
The president’s proposal is also a controversial one as is he seeking money for his reelection from the hedge fund industry as evidenced by a $35,800 a plate dinner with hedge fund managers and others last week at a New York restaurant.
The debt ceiling issue has come about due to the U.S. Treasury’s contention that the federal government's current $14.3 trillion debt ceiling has to be raised by Aug. 2 in order to avoid skyrocketing interest rates and a plummeting U.S. dollar.