Senate considers closing hedge fund tax loophole


The U.S. Congress is preparing to consider a proposal that would cut off a loophole that allows hedge fund managers of offshore funds to defer taxes on large amounts of income.

Senator John Kerry (D - MA) and Representative Rahm Emanuel (D - IL.) plan to introduce corresponding bills in the House and Senate that would cap the amount that hedge fund managers can defer in offshore tax havens to the same amount that other Americans are allowed to defer in retirement accounts, currently $19,500.

Under the current laws, hedge fund managers are able to defer enormous amounts of