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If the point of lower capital gains tax rate is to incentivize risking capital then the carried interest loophole makes no sense because the noney manager isn't
by guelo 8y ago
If the point of lower capital gains tax rate is to incentivize risking capital then the carried interest loophole makes no sense because the noney manager isn't risking his capital. His "share of the dividend" is just another fee that should be taxed as any other income.
- MR4D 8y agoIf you want to discuss “fair”, I’d tend to agree with you. But taxing them while not screwing out all the other business structures that look just like this (see harryh’s example above) is damn near impossible. Which is why the exemption is in there. Figure that out and it might change. Until then, you risk screwing up all sorts of businesses that are not financial let alone hedge funds.