Hedge funds brace for looming tax changes
By Lawrence Delevingne
Fri May 21, 2010
In the past week, Congress has once again proposed a measure
that would remove the exemption that allows hedge funds and
other asset managers to pay capital gains taxes on carried
interest. The measure looks likelier to pass this time than in
any previous attempt, but hedge funds aren’t
panicking, at least openly, and some say they view the higher
taxes as a welcome change.
"From an ethical point of view, I’m not sure why
hedge fund managers should pay less tax than people who have
real jobs and work hard," said Steve Shapiro, president of
Intrepid Capital Management. "I’d certainly be the
last person to tell you if they tax carried interest
it’s going to destroy the free enterprise
A proposal likely to pass Congress would effectively raise the
tax rate to 34.7% on the performance fees hedge funds charge
their clients for gains on investments held for...
ISSN: 2151-1845 / CDC10004H
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