Not only do these guys “earn” obscene amounts of money in the rigged casino called Wall Street, they have a tax deduction written just for them called the “carried interest deduction”. It allows them to pay absolutely no taxes on the earnings related to their fund’s performance. Most of these guys pay little or no taxes on these “earnings”. A garbage truck driver making $50,000 per year probably pays more in taxes than some of these billionaire hedge fund managers. That’s called winning in the oligarchy we call America.
You will find more statistics at Statista
Honest question….how in the fuck is this even possible? They produce NOTHING, but make BILLIONS.
Fuck.
This flagrant injustice is the reason the leftist crowd is braying for steeply higher taxes on “the rich”. While I am in sympathy with their outrage, their proposals are just as unjust as that that they are trying to correct, and would punish our productive, entrepreneurial rich along with the rentier rich who skim billions in the Wall St gambling dens thanks to Fed policy, and pay taxes at a lower rate than I do.
A flat tax of 12% with no deductions would level the playing field greatly, and tax even low wage earners less, while greatly increasing revenues and simplifying the collection process to the point of rendering most of the IRS’ workforce redundant. As things work at the moment, many super-rich individuals and corporations are able to take advantage of deductions not available to those of lesser means, to reduce their taxes almost to zero, while smaller corporations that do not get special breaks pay a murderous rate of 35%, and upper middle income ($100K -$300K) individuals and families are taxed at exorbitant rates.
However, we are not likely to see any major change in the way we tax because the current system has too many stakeholders. Not only do large numbers of powerful individuals and corporations profit greatly from the status quo, but so do armies of IRS workers, lawyers, and accounts. Simplifying our taxes would render three- quarters of these hordes jobless.
Citadel is the Fund that process stuffing the markets with Treasury $$$$ (Plunge Protection Team).
I feel bad for that Joseph Edelman guy, a lousy $300,000,000. What a crappy year, how can he even face his fellow hedgies. No new yacht for him this year. He probably has to fly commercial, poor fella.
Bob.
Hmmm
It was precisely this level of injustice that eventually prompted the French to start cutting off heads…..
Carried interest does not result in no taxes. It taxes that portion of their income (fees based on returns) at capital gains rates, currently 23.8% federal for the brackets they are in. It should be changed I agree, but at least get the facts right.
Get your fucking facts straight.
“John Paulson, the most successful hedge-fund manager of all, bet against the mortgage market one year and then bet with Glenn Beck in the gold market the next. Paulson made himself $9 billion in fees in just two years. His current tax bill on that $9 billion? Zero.”
This is the trick: “So long as they leave their money, known as “carried interest,” in the hedge fund, their taxes are deferred. They only pay taxes when they cash out, which could be decades from now for younger managers. How do these hedge-fund managers get money in the meantime? By borrowing against the carried interest, often at absurdly low rates—currently about 2 percent.”
TPC says:
“Honest question….how in the fuck is this even possible?”
The first rule of the club is you don’t talk about the club.
I’m in the wrong business.
Guys, I started a GoFundMe to pay for some shrubberies to go alongside the east side of my house.
Please give moneies. I want to billionaire.
Hmmm
You know what they say; If you have to ask how, then you are automatically ineligible to receive it……….
“Two-thirds of the directors at the New York Fed are hand-picked by the same bankers that the Fed is in charge of regulating.
Today, the United States is No. 1 in corporate profits, No. 1 in CEO salaries, No. 1 in childhood poverty, and No. 1 in income and wealth inequality in the industrialized world.
Today, the top one-tenth of 1% owns nearly as much wealth as the bottom 90%. The economic game is rigged, and this level of inequality is unsustainable. We need an economy that works for all, not just the powerful.
I think what the American people are saying is enough is enough. This country, this great country, belongs to all of us. It cannot continue to be controlled by a handful of billionaires who apparently want it all.”
Bernie Sanders
PLEASE don’t you guys worry because The Donald says the garbage truck driver will have no federal income tax either if he can stay at 50k or under for him and the missus. The Donald is going to fix it for us to skate around those pesky tax problems just like the billionaires do it.
Go Trump !!
News Flash>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
The Donald will hold a rally in NJ next week. People attending will be required to PURCHASE A TICKET FOR $200 to get into the rally.
Stucky- Get your checkbook ready, This is one you won’t want to miss and you can report back to the TBP community what The Donald had to say.
Has anyone ever heard of a political candidate charging to get into a rally? Fund raisers/dinners yes, rallies no.
Bea – I thought “The Donald” was making a BIG deal about him “funding his Own campaign”. Seems he was lying, just as the rest do, so “no change there” then.
As pointed out by others over on ZH – “hope you all like “Hope’n’Change ver 2″ ” – “I’m going to make America Great Again”.
Assuming he gets “in”, it will be interesting to look back in 2020 – when you may well have “20/20” retrospective vision . . . . .
Phil from Oz
I am waiting in great anticipation to hear what Card, Sage and Starfcker think about the revelation that Trump has the balls to ask a working class couple to pay 400 bucks to come to a rally and hear him blather on and on. That may be lunch money for the Donald but the average schmuck still looks at $400 as a lot of money. This time will be different……….right.
t
Bea – $400 is a LOT of money for the majority.
Trump is using this “attendance fee” for two reasons – crowd management (so the riff-raff will be conveniently excluded), and a means of gathering information. I have NO doubt that those “let in” will have their details retained (“membership of exclusive Trump Supporters Club” or suchlike) and this data will be used down the line for Trump’s (financial) benefit.
The “money” really IS loose change to Trump (unless he’s not telling us the whole truth re. his “billions”, which seems increasingly likely).
TPC, no fockin way. Get job you. Now.
Hold on a minute.
Admin quoted Bernie Saunders in what appears to be a positive light.
What the fuck is going on here?
Hers’s a thought experiment for you:
You will be hired as a hedge fund manager and paid a minimum of a $billion a year to start, tax free. Training provided. The only catch is you cant rock the boat.
How many of the morally-pure among us would honestly say no?
Vote for Trump and we all get to Billionaire. Start the presses!
Imagine your at the restaurant and your ordering for everybody and you tell the waitress,
“Let me know when I get to a $Billion.”
Happy days are coming back. ‘Murika the Beautiful, Baby!!!!!
The Trump rally in NJ gets even better. The $200 per person is to help pay-off Christie’s campaign debts.
Cdubs can’t get it through his Canadian pea brain that people are capable of agreeing with people on some issues and not others. As a liberal ideologue, he’s baffled that I could agree with Sanders on Wall Street and the Fed. I think Cdubs has replaced bb as the TBP Village Idiot.
Admin,
I am delighted to learn that there is breadth and nuance to your intellect, now if we could make some progress with your stunted sense of humour we’d really be getting somewhere.
Careful with the insults pal, when I take that hedge fund manager job I might buy your pokey little company and transfer you to North Korea.
Cdubs
I don’t have a company. It’s just little old me pecking away on a keyboard. I’m sure you’d make a brilliant hedge fund manager with all those global warming and diversity stock plays. You’re a regular Canadian libtard genius.
I’m guessing Trump will turn the WH into The Trump B&B Spa and Casino in the first 100 days if selected since he thinks it’s ok to charge a $200 ticket price just to hear him speak. He probably has a list lined up of besties who will pay 10K per knight to sleep in some dead president’s bedroom and shoot craps next to the WH swimming pool.
10K per night- asshole tablet.
Is Bea secretly telegraphing the KKK connection?
Knights in white satin,
Never reaching the end,
Letters I’ve written,
Never meaning to send.
Cdubbya says: Admin, I am delighted to learn that there is breadth and nuance to your intellect, now if we could make some progress with your stunted sense of humour we’d really be getting somewhere.
Maybe admin has been too nuanced, merely sending the high striker to Bob Newhart level.