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.
Jimmy Cusack is the tough kid from a blue-collar neighborhood who made good on Wall Street. Well, almost. After a sterling start to his career, things have soured. His hedge fund has collapsed. The bank is foreclosing on his condominium. And his wife is three months pregnant. That’s the good news.
From Publisher's Weekly -
