OK TO ALL YOU HEDGE FUND MANAGERS OUT THERE....
The usual fee structure for a hedge fund is called 2-and-20: a flat management fee (often 2 percent) on all assets, plus a performance fee (often 20 percent) on profits above a set threshold. Currently, the management fee is taxed at ordinary rates up to 39.6 percent, while the performance fee enjoys a preferential rate of 23.8 percent.
Under Mr. Trumps plan, all this income would be taxed at a maximum of 25 percent. The performance fee would be subject to a small tax increase, but that effect would be dwarfed by the large tax cut on ordinary management fees.
The performance fees are why managers start hedge funds. The management fees cover expenses of operation.
I am not a hedge fund manager, I don’t know any hedge fund managers, but I do know a whole lot of people who make between 60K and 160K who would benefit greatly from this type of tax structure.
Let’s be honest, the revenue of the Federal government has never determined its’ spending. They will always spend more regardless of revenue unless a leader takes over and forces them not too. That means massive cuts in departments including whole departmental elimination.
I want to know Trump’s stand on prickly heat. If he isn’t with me and doesn’t have a detailed plan on how to combat prickly heat I’m not voting for him.
Consider the source at the Slimes:
Josh Barro (@jbarro) | Twitter
https://twitter.com/jbarro
1 hour ago
“Jeb is the “serious” candidate because he promises 4% growth instead of 6% and cuts the top rate to 28% not 25%.”
Josh Barro
Joshua A. “Josh” Barro is an American opinion journalist currently contributing to The New York Times ‘ “The Upshot” venture, which focuses on politics and public policy. He identifies as neoliberal and Republican. Wikipedia
Born: 1984
Education: Harvard University
Residence: New York City, NY
Parents: Robert Barro, Rachel McCleary
The rates are almost irrelevant. What’s happening with the loopholes? That’s the real question.
Yeah, the management fees would be taxed at a lower—as would the income of all high wage earners—but Trump would also take away lots of deductions and loopholes. Normalizing “carried interest” with regular income tax rates is an example of a related loophole that Trump is taking away.
jobs jobs jobs Making America great again. Go Trump!!
A) The New York Times is an enemy of all that is good, all that is holy, and is a strident opponent of mankind.
B) I like tax cuts, even when rich people get them.