Hmm, I'm starting to understand this phony capital gains taxation of beefer and private equity incentive fees. And it smells really bad. Grrrrrrr.
As I understand it, they give themselves a piece of the partnership for nothing invested & work to increase its value. Then periodically they give themselves more as a "carried interest" if they perform and on & on work to increase the value of their "carried interest". Eventually they get a payout. So their tax lawyers & accountants find a way to call that a "capital investment" and claim a long term capital gains tax. But they never had any hard $$$ invested themselves. Or owed $$$ on a loan to make the investment. Nothing at risk at all.
What crap! [IFF I understand correctly they are investing no hard $$$ or risk no actual $$$ of their own].
That's compensation, just like an executive stock option & should be taxed as ordinary income when exercised/paid. So mega-billionaires use a loophole [I wonder who paid off a congressman for that one to be inserted in the dead of night? ] to pay long term capital gains taxes on their compensation, while any other normal trader pays short-term capital gains on real $$$ invested & risked. And Joe & Jane Worker pays higher tax rates in their compensation than a mega-billionaire beefer.
Despicable.
PS: It's another example how the rich & powerful give themselves special tax breaks, like municipal bond freeloaders, while Joe & Jane Worker pay for the government. Gee, and the rich & powerful sure like to tell the rest of the people how to live, too. Grrrrrrrrrr.
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Wait a second Bunkerman. Nothing at risk? Says who? Most of private equity firms are started by guys with their own money.
Steven Schwartzman has all his money in the Blackstone group.
As far as taxes are concerned.........private equity guys aren't the legislature. They don't make the rules. They play by them. Take that complaint up with Congress.
3-2-1 crack spread is 30 - a recent years record and way over the Katrina spike.
So they should get long term capital gains tax on that money, not on their compensation.
All his money or all his pay? Unless a tax is paid on the compenasation first, it's unfair vs. the rest of us.
Congress is doing that now, Bud. The beefer tax lawyers came up with this phony "carried interest" technique for getting a low tax bill on their compensation. It was probably created by some congressman on the payroll.
Beefers play by the rules lololololololololol. They hire droves of laywers to lobby for favorable treatment that no one else can get.
Uh.........hiring lawyers/pols to lobby congress is legal. I don't see anything wrong with that. If I have business interests why shouldn't I try to contact senators and congressman and explain my interests.
Uh, Bud, do you play golf at a country club? You sure sound like a country club Republican sometimes. ;-)
There are many rules and regulations and laws I vehemently disagee with. If I had the money...I would hire lobbyists to try to get them changed. Nothing unfair or un-American about that.
Lmaooooooo...........I do like to play golf with the rich and powerful. I get to play at private courses that I could never afford to join.
I agree their activities in "lobbying" for loopholes is legal. But it's wrong & unfair. The robber barons did it, and many before & after did it, too, and do it now. That's why we need populist politicians [like Teddy Roosevelt & Ronald Reagan & Andrew Jackson] to level the playing field.
I sure wish I could find one now to back. :-(
just read the front page of tampa tribune. we are supposed to get a huge cut in property taxes soon. this coming from a guy, from MA, who just cudnt believe how much more it was to live in florida than MA. he said pt blank. " retired folks cant afford to live in FL"
but the CPI is 2.8%, thats a bigger lie than iraq having WMD!
Rich and powerful.....hmmm......you defined rich for us Bunkerman.....but who is the powerful?
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