Do you think hedge fund managers should pay a smaller percentage of taxes than the rest of us?

Question

Yesterday, the Senate and House held hearings on the question of whether hedge funds executives should be taxed at the same rate as other rich people (the House hearing was more broadly on the question of tax fairness). Yes, that tells you how ludicrous the debate has become. Hedge fund and private equity executives have used a wrinkle in the tax code to pay just 15 percent on so-called "carried interest"; other wealthy people pay 35 percent (also too low but that’s a different debate). And, of course, this says nothing of the spectacle of people who make hundreds of millions of dollars and even billions of dollars paying a lower rate of taxes than a middle-class person. Rep. Sander Levin has introduced a bill (H.R. 2834) that would, in fact, raise the tax rate on "carried interest."

Average pay is $500 million. The top earner last year, according to Institutional Investor’s Alpha magazine, earned $1.7 billion. They pay a 15% capital gains rate instead of the 25% a teacher might pay

The wealthy pay 35% so this is much less than them. The Laffer curve actually says that there are optimum points to cut taxes and most economists agreed with the first Bush tax cut, not the second one.

Answer 1

Well this question could be ''are you right wing or left wing?''

On a purely economic level their is an arguement for them to be taxed less highly. Incentives and the laffer curve etc.

However i believe that a tax system should be progressive,out of fairness.

Answer 2

they do no longer. They pay so a lot extra. many don't pay a lot earnings taxes yet they pay a pile of others together with capital valuable factors. some do have dodges like charitable foundations to maintain their belongings yet something popping out of those gets taxed. some earnings going into those additionally gets taxed.

Answer 3

since I'm in favour of abolishing all income taxes and shifting the tax burden to consumption alone, I'd have to say that your managers should pay the same taxes as everyone else on their income -- ZERO.


:-)