Posted on 06/28/2010 4:27:52 PM PDT by Extremely Extreme Extremist
NEW YORK (Reuters) - Recession-hit New York could raise an extra $50 million a year by collecting income taxes from people who work for hedge funds in the state but live elsewhere, according to a legislative plan to raise revenue.
The new plan would tax so-called carried interest.
A spokesman for Democratic Assembly Speaker Sheldon Silver said by telephone on Monday that it means hedge fund managers would be treated the same way as other commuters.
Congress also has considered taxing carried interest -- profits gleaned by managing assets -- at ordinary income rates -- much to the dismay of hedge fund and private equity titans.
But last week, the federal proposal collapsed with a bill extending unemployment benefits. So for the moment, investment managers still pay only the 15 percent federal capital gains tax on their profits.
Democratic Governor David Paterson and New York lawmakers have balked at broad-based tax hikes after last year, when the top state income tax was raised to 8.97 percent for people whose annual earnings top $500,000.
(Excerpt) Read more at wtaq.com ...
Time to start the corporate movement countdown clock.
Wealthy people and corporations should just move.
Do these crooked, greedy, moronic democrats really think that the hedge funds will not move to a low tax Red State?
Hedge funds are simply a bank of high speed computers manned by some very, very smart people who spend their lives on the telephone and the Internet.
Just watch for a recommendation for an "exit tax" to tax money carriers leaving the state.
Why stop there? Make everyone who buys or sells stock pay NY income tax! Just think of the money they could raise /sarc
(New York) State put freeze on hiring, then added 51,464 people
But state officials hired 51,464 people at a cost to taxpayers of more than $1 billion in salaries, plus fringe benefits, since that decree on July 30, 2008.
The hires include sons of elected officials, a close friend of the governor’s and a slew of highly paid political appointees.
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