Posted on 09/23/2015 4:28:49 AM PDT by expat_panama
- there really is an Occupy Wall Street wing of FR, and this is it, or
- these are people who if Donald Trump said that alligators give milk, they'd be lining up with bottles.
Bernie Sanders completely agrees with you, as do the memberships of DU and Daily Kos.
Lot of posters been ranting for months over articles they never bothered to read. You know, reading may cause them to find out stuff that's uncomfortable with their emotional attachments.
I tried to stick with this condescending piece but could not. He, like others is trying to make a simple issue, complex. Home builders, coin dealers, etc. pay the labor rate rate when they do a development or sell off. Hedgies pay the capital gains rate even though, since it’s their business, it should be the labor rate. They have that ruling because of campaign contributions. It is government picking winners and losers and obvious crony capitalism. What conservative could support that? I don’t want anyone paying higher taxes but when I look at what hedgies have earned off of me and pay at the cap gains rate when in the same business I pay at the labor rate, I’m pissed about it.
2. How many people are actually going to pay $750 out of their own pockets for this drug?
It's ironic, when you think about it. People in this country were much happier when they lived shorter lives and they didn't have to worry about whether a drug cost $7.50 or $750 because the drug didn't even exist.
... I look at what hedgies have earned off of me ...
How much would that be?
The issue is that the drug in question did exist, and did exist at a price of $7.50/pill. Then the guy bought the rights to the pill, and jacked up the price 5000% percent. Not because the costs of production increased, but purely for the purpose of increasing profits.
And the company will sell as many pills at $750 (or whatever the new price was - much higher, I believe) as it did at $7.50. Life-saving medications are highly, highly price inelastic (that is, demand is hardly impacted by an increase in price). The guy jacked up the price because he has a captive market that NEEDS to pay WHATEVER the cost is, because they will die without the medication.
I disagree with the poster above that equates this guy with all "hedge fund people." But the guy is a jerk.
Liberal Senators Urge Treasury to Limit Carried Interest Tax Break
CNBC Explains: Carried Interest
What is carried interest?
Carried interest is a rule in the tax code that lets the managers of some types of private investment funds—hedge, private equity, venture capital, real estate and other types of vehicles—pay a lower rate than most individuals.
More specifically, the "general partner" who manages money on behalf of "limited partner" clients receives a share of profits from any investment gain on stocks, bonds, real estate or other securities held for more than a year. A hedge fund manager, for example, usually takes 20 percent of all gains on the fund's investments.
The tax code treats that income as a "long-term capital gain," which is taxed at a lower rate than ordinary income (currently maximums of 20 percent versus 39.6 percent).
Fund managers sometimes also earn a flat management fee (typically 2 percent in the hedge fund industry), which is taxed at the higher ordinary income tax rate.
As best as I can understand, the fund manager does not earn a salary for managing the long term fund or investment. If however they earn a flat management fee that is taxed at the ordinary income rate. But mostly they only earn based on their share of profits from any investment gain. In other words they forgo/sacrifice getting a guaranteed salary (taxed as ordinary income) in exchange for a share of any profits from any future investment gain. If the investment returns no gains, the manager receives no income and in that respect, they are investors and that income, when realized, should be taxed as a capital gain.
We had a deal with the Uber-Rich: We would PROTECT them from high taxes and they would PROTECT our country, by keeping it safe from invasion.
THEY HAVE WELCHED on their side by supporting Open Borders.
As far as I’m concerned a 99% tax rate on earning over $10M per year would be JUST FINE by me - at least until they start helping up clear out the country from illegals and building the wall. If they won’t hold up their side of the bargain, we conservatives DON’T OWE THEM JACK.
Here’s another article re the slowdown in China:
China Factory PMI Unexpectedly Falls to 6-1/2 Year Low
http://www.foxbusiness.com/economy-policy/2015/09/23/china-factory-pmi-unexpectedly-falls-to-6-12-year-low/?intcmp=bigtopmarketfeatures
“The weaker-than-expected PMI suggested domestic and external demand remained sluggish. It’s almost certain China’s economic growth will slide below 7 percent in the second half of this year,” economists at Minsheng Securities said. “To achieve the growth target, we expect the authorities to keep its loosening monetary policy stance with more measures on the fiscal front in coming months.”
Amen. NRO out-establishments the most GOPe politicans around. I don't ever even visit their site anymore, and I used to check them out a couple of times a day.
And Coca-Cola used to cost $.05 per bottle. What does this have to do with anything?
Then the guy bought the rights to the pill, and jacked up the price 5000% percent. Not because the costs of production increased, but purely for the purpose of increasing profits.
Is it possible that part of the price increase also reflects the cost of buying the rights to the pill? If I buy the rights to Coca-Cola for $100 billion, do I still have to charge $1 per bottle?
If a drug that used to cost $7.50 is now being sold for $750, you can be sure the entire pharmaceutical industry is out there testing alternative drugs that can be sold for $8, $80, or any other price that is substantially less than $750. This company is simply racing against time, hoping they can sell enough pills at $750 to make this venture worthwhile before the market is flooded with competing products that will drive the price down again.
And the company will sell as many pills at $750 (or whatever the new price was - much higher, I believe) as it did at $7.50. Life-saving medications are highly, highly price inelastic (that is, demand is hardly impacted by an increase in price). The guy jacked up the price because he has a captive market that NEEDS to pay WHATEVER the cost is, because they will die without the medication.
See my previous point. Life-saving may be price inelastic, and they may be absolutely necessary for some people to survive. But the truth is that the patent for this particular drug belongs to someone else, as do the production facilities and the pharmacies ... and that means nobody has the right to set its price based on their own needs.
Williamson and Jonah Goldberg both have TDS. They cannot stand the thought of an uncouth barbarian like Trump winning. Jonah’s mom also despises Trump, viz. featured postings at lucianne.com.
I’ve worked with these hedge fund guys and PE guys most of my career. Not a fan. The Fed pumping is making them billionaires. I am for getting some tax dollars back. In a perfect world I would say no way, however, the system is busted.
Let’s call it substantial economic gains multiple times and leave it at that!
Your living in Panama and consider yourself an ex-patriot, so who gives a rat ass what you think, coward.
NOW you are talking my language!!
Let's undo the ZIRP, QE1/2/3/4 policies. I have yet to hear Trump get on board with this.
My understanding is the cap gains tax rate is to serve as a reward/inducement for putting your actual capital, either owned or borrowed, at risk in a business, a factory - any sort of venture where you gamble on the venture being successful. If it fails you lose your capital, go bankrupt, shoot yourself or whatever.
This sort of risk-it-all scenario doesn’t apply to the typical ‘hedge fund manager’ who is at best a consultant firm that is paid handsomely for applying tax expertise as it applies to investment strategies or advising/implementing a host of investment and leveraging techniques, etc.
Simply put, they basically are playing with other people’s money instead of their own. You invest your money in the hedge fund, they manage it. It’s why they are called a MANAGER.
It should be simple...you do a job you get paid for...that’s earned income, and taxed appropriately. If you investing YOUR OWN money, that’s capital gains.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.