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Strategies & Market Trends : Moomin Valley (formerly Troll-free Zone)

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To: Moominoid who wrote (2768)3/9/2007 5:31:05 PM
From: RealMuLan  Read Replies (1) of 2852
 
[Sounds wonderful<g>]--"Senate mulls tax hike for hedge funds
By Jeff Benjamin
March 9, 2007
investmentnews.com
The Senate finance committee is considering changes to tax rules that could more than double the tax rate for hedge funds and other private investment pools, according to published reports.

While no proposals are imminent, the formative stages of the consideration is being interpreted as evidence that the personal wealth of hedge fund managers and private equity partners could be targeted by aggressive political oversight of the industry, the Financial Times reported.

Much of focus is on the so-called carried interest -- or performance fee -- earned by an investment pool’s general partners.

The carried interest is currently taxed at the 15% capital gains rate, but the Senate finance committee is said to be looking into whether performance fee revenues should be taxed as regular income, which could go as high as 35%."
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