They will eat a lot of it

Reader comment on: Grover Norquist on 'Carried Interest'

Submitted by benjamin (United States), May 28, 2010 08:09

When your business model is 2 and 20, you have a lot of room to give. The reason why institutions invest in hedge funds is because their outsized returns make the obscene 2 and 20 standard seem like a good deal. If the higher tax shaves too much in returns for investors, they will make the move to a simpler fund with far lower fees. We are not talking about raising the gas tax here where the profit margin is so razor thin.


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