“The Very Rich Are Different From You And Me…”
At least, they think they are. Their lifestyles certainly are:
At present, the tax law permits partners of leveraged buyout firms and hedge funds to pretend that their fees are investment income that deserves capital gains tax treatment instead of compensation, which would be taxed at the much higher ordinary income rate.
Capital gains are taxed at 15 percent, By some estimates, the U.S. Treasury loses as much as $12.6 billion a year in these taxes. That’s money that could go to fully funding the five-year cost of expanding the public health-insurance program for low-income children, securing the Medicare and Social Security programs or restoring funding for public schools.
James Simons, founder of Renaissance Technologies and the highest-paid hedge fund partner last year, earned $1.7 billion, equal to the entire federal spending on maintaining the national park system. There is absolutely no justification for billionaires not paying their fair share of income taxes like the rest of us.
And here’s this from the Union Voice e-mail network:
Get this: The top 25 hedge fund partners earned more than $14 billion in 2006. That’s as much as all of New York City’s 80,000
public school teachers earned over nearly three years.
But these hedge fund partners pay a mere fraction of the federal taxes that the teachers pay on their income. And they avoid the
15.3 percent Social Security and Medicare taxes that teachers, firefighters, police officers and other working Americans pay on
The Levin-Rangel bill (H.R 2834) would close this loophole and appropriately tax the “carried interest” from partnerships as compensation.
Tell your representative to support H.R. 2834 and prevent these multi-millionaires from gaming the system:
You know what to do.