You're still wrong, Mr Stoll
Reader comment on: Daily News on Carried Interest
Submitted by Fast Eddie (United States), Jan 26, 2012 16:10
You say "Which little guys ......?" Well, I don't know who YOU were referring to when you used the term initially, but I'm referring to businessmen like myself. One of my businesses produces capital gains for my clients but the IRS taxes me at the regular income rates because none of my money is tied up in the investment. I simply take a percentage off the top when there is a profit at sale time. But, since I don't have an army of well healed lobbyists on my side, I don't get any 'carried interest' tax cut.
You say "the managers only get it if they have gains, not if they have losses." EXACTLY RIGHT because they don't have their money in the deal. In REAL capital gains situations, the principals take both gains and losses, depending on the outcomes.
You say "its been this way for a long time, so changing would amount to a big tax increase." I don't see how this justifies a tax loophole that was created to cut a break for the big guys. If anybody can afford higher taxes, it is them. 'Longevity' of an unfair situation is no excuse for its continuation.
You say "why should managers get worse tax treatment then their investors on the same gains?" Well, the reason is precisely because they are managers, repeat MANAGERS, and the people who legitimately deserve the capital gains tax treatment are INVESTORS. 99.999% of the MANAGERS in the country have their incomes taxed regularly, not as capital gains. Their is no rational excuse for this select few MANAGERS to have their income taxed differently.
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