Posted on 08/08/2022 4:02:32 PM PDT by nickcarraway
Wall Street is breathing a quiet sigh of relief over the Senate’s version of the Inflation Reduction Act — but experts warn a last-minute provision to tax stock buybacks could come back to haunt investors.
By some measures, the $740 billion energy and health care spending bill has been radically defanged versus an earlier version, which would have cost The Street more than $800 billion, according to estimates. Most notably, the amended version fails to crack down on the so-called “carried-interest loophole,” a giveaway to buyout barons and hedge-fund moguls.
A proposal to shrink the loophole — which treats private equity and hedge fund titans’ income as investment gains and allows them to pay the 20% capital gains tax rate instead of the personal tax rate of 37% — would have raised $14 billion over 10 years. Closing it altogether would have generated at least $180 billion over 10 years, according to one analysis from 2015.
(Excerpt) Read more at nypost.com ...
Wall Streat always wins. This new “act” will further destroy their competition.
Its the Manchin-Sinema Deficit Enhancement Act now. Two Benedict Arnolds seeking to drive America Marxist!
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