Obama is expected to start the process of removing hedge fund tax breaks.
If there is one tax loophole that looks dead in the water, it’s the law that lets hedge fund and private equity managers pay a 15-percent capital-gains rate on the multimillion-dollar fees they collect — substantially less than the top income tax rates paid by their secretaries, chauffeurs, and the pilots of their private jets.
On the surface, the stars are aligned. There is a newly elected Democrat in the White House who is desperate to raise revenues. Killing this tax break would raise $31 billion over five years. In addition, there are Democratic House and Senate majorities – representing the party of working people – and what could more unfair than letting billionaires pay taxes at a fraction of the rate of the guy with the lunch pail ?