Deconstructing the tax debate
Wed Dec 5, 2007
Who cares about carried interest? Offshore deferral is a bigger issue for most hedge funds - and is much more likely to get the ax
Who cares about carried interest? Offshore deferral is a
bigger issue for most hedge funds - and is much more likely to
get the ax
By Michelle Celarier
Senator Hillary Clinton met with a group of hedge fund donors
earlier this year, she expected to be barraged by complaints
about proposed tax hikes on hedge funds - hikes that have been
endorsed by most of the Democratic presidential hopefuls,
including herself. "I suppose you want to talk about carried
interest," Clinton said, referring to the proposal to eliminate
capital gains treatment for partnership incentive income based
on long-term investments.
But nary a word was uttered about the controversial tax
change, according to one person in attendance. Perhaps the tax
didn't really matter to these hedge fund execs. Or maybe they
had already come to the conclusion that the loophole was here
to stay. After all, Charles Schumer, the powerful Democratic
ISSN: 2151-1845 / CDC10004H
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