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Politics : Formerly About Advanced Micro Devices
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To: J_F_Shepard who wrote (602786)3/7/2011 7:47:42 PM
From: TimF  Read Replies (1) of 1575994
 
It comes from profits made by trading stock

And other things.

and getting a huge tax break that you or I do not get.

No it doesn't. Getting a tax break means less of it is taken away, but it doesn't generate the profit or the compensation.

The situation can only be righted by disallowing Hedge funds from claiming the salaries they get are cap gains

Even if such a claim is unfair, wrong, incorrect, or unjust in some way, that doesn't mean the money comes from the government, or from "the public". It would only support a claim that once generated more of it should be taken away, which is an entirely different point.

As a practical matter whether or not its considered fair or good, your not going to get a lot more tax income here. These are the people structuring the deal. If the current structure of the deal is no longer allowed to get capital gains tax rates then they will restructure the deal to make it an actual direct capital gain, or they will find some other way to reduce tax liability. You could increase rates on capital gains so that claiming the money as a capital gain doesn't matter so much, but then your only likely to cause them to find something else in the tax code, and generally increasing capital gains tax rates is negative for the economy.
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