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Hedge Fund Billionaires Pay Lowest Income Tax Rates

Did you know that hedge fund managers pay a lower income-tax rate than you?  Hedge fund managers only pay 15% income tax.  How?When you take a draw of your partnership profits, it's treated as income.  If you, like many readers, are successful, then you're paying 35% income tax on your profits.  When a hedge fund manager takes a draw from profits, his income is treated as long-term capital gains - 15%.This is a loophole that has existed for years.  Every year there's an editorial about it.  Here is the New York Time's latest.  Every year the loophole remains.If your representative cannot even make obvious changes on small things involving Wall Street, how can you trust them on the large things?  If Congress will not close a loophole that benefits a few - and that everyone realizes is unfair - why would Congress regulate Wall Street on larger issues?Norm Pattis, an agnostic, has long been fond of Biblical parables...continue to full post

Full post as published by Crime & Federalism on April 05, 2010 (boomark / email).