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View Diary: "The Top 1% Pays..." and Other Tax Myths (12 comments)

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  •  Cf. Hedge Fund Managers (4+ / 0-)

    Hedge fund managers salary consists of their earnings from dealing. Yet all of it is treated as capital gains. While in reality, it is pretty much their sole source of income.

    That is why they as a class are among the most notorious underpayers of their fair share of taxes, to the tune of billions every year by just the 25 or so highest paid members of this class or "earners".

    "You've got to be very careful if you don't know where you are going, because you might not get there." “When you come to the fork in the road, take it.” --Yogi Berra

    by HeartlandLiberal on Mon Aug 22, 2011 at 04:14:47 AM PDT

    [ Parent ]

    •  It depends on the type of fund (1+ / 0-)
      Recommended by:
      dot farmer

      The income from the partnership flows through to the hedge fund manager.  Since hedge funds have lotsa short term and ordinary income, hedge fund managers will have a lotta income taxed at 35%.

      Private equity fund managers, OTOH, will have a lotta long term capital gains taxable at 15%.

      •  you are absolutely wrong johnny, what you (0+ / 0-)

        think is totally out of date. All capital gains are taxed at 15% now. There is no difference between long and short term.

        Besides they don't make it as investors but as a share of the capital gains of the funds.

        You are very sure of your self to be so wrong so often.

        I'm asking you to believe. Not in my ability to bring about real change in Washington ... *I'm asking you to believe in yours.* Barack Obama

        by samddobermann on Wed Aug 31, 2011 at 03:10:52 AM PDT

        [ Parent ]

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