I was amused by an FT headline this morning that says:
Since these two are not natural allies what is it that they doing in unison? They both want to scrap the tax break that lets the so called 'carried interest' in hedge funds be taxed as if it is capital gains when it is, to anyone with the eyes to see, very obviously income.
For once their unity is justified.
And we should end the same tax breaks here in the UK. They are absurd and undermine fair markets.
But please do not take that as a Trump endorsement.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
There are links to this blog's glossary in the above post that explain technical terms used in it. Follow them for more explanations.
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Buy me a coffee!
“If Hitler invaded Hell, I would make at least a favourable reference to the devil in the House of Commons” – Winston Churchill
If Trump has a hundred policies and you have a hundred policies, it is possible that one or two may coincide. If there is another that you might agree on, it would be interesting to know which.
I haven’t noticed it yet….
The current proposals on taxation of performance linked rewards paid to asset managers – see https://www.gov.uk/government/consultations/taxation-of-performance-linked-rewards-paid-to-asset-managers and https://www.gov.uk/government/publications/investment-managers-performance-linked-rewards – go some considerable way to tax carried interest as income, if the average holding period of investments is less than four years.
Would you say that returns from co-investment are “very obviously income” too? How about sweet equity?
I would argue all such returns to managers are income
How can they be anything else?
That is what managers earn