In today’s New York Times, Andrew Sorkin describes the sweetheart taxes for hedge-fund and private-equity partners as follows:
General partners at private equity funds, who take a cut of the investment gains they earn for their investors in the form of “carried interest,” have been paying federal taxes worth only 15 percent of that cut.
This means the “gods of Greenwich” receive about a 24.6 percent tax break. That’s because the highest bracket on ordinary income—currently 35 percent—is expected to return to 39.6 percent. And the gods don’t pay taxes on their carried interests until they liquidate and pull out the cash.
"The Gods of Greenwich is a pure delight, racing relentlessly from the bedrooms of Manhattan to the boardrooms of Connecticut to the banks of Iceland. Bravo!”
