The States and 'Carried Interest'

Though the proposal to tax "carried interest" of fund managers as ordinary income rather than at the capital gains rate that now applies is dead, at least for now, at the federal level, New York State is having its own look at the issue, reports the New York Times. The state thinks it can wring "about $50 million a year" in additional tax revenue from "an estimated 1,000 New York fund managers living in Connecticut or New Jersey." It works out to a $50,000 state tax increase per fund manager.