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New York Gov. Cuomo Propses 17% “Fairness Tax” On Hedge Fund Managers

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(Via Zerohedge)

We suspect Puerto Rico and Miami may be about to see a mass immigration… from New York state…

Never one to miss an opportunity for some virtue-signaling and wealth distribution, New York State Governor Andrew Cuomo announced today, legislation to close carried interest loophole with a so-called “Fairness Fix.”

Under U.S. law, part of income earned by hedge fund managers, private equity investors, venture capitalists and certain real estate investors is known as carried interest and is treated as capital gains, rather than as ordinary income, resulting in lower capital gains tax rates.


This is reportedly costing NY state about $100m/year.


Cuomo proposing legislation treating “this hedge fund compensation” as ordinary income for state tax purposes.


“By imposing a 17 percent “Fairness Fix,” every hedge fund manager working in New York State – including those living outside of the state – will be required to pay their fair share and losses under the federal tax code will be compensated. This proposal could raise nearly $1.1 billion annually and help ease the impacts of the federal tax plan.”


Full Press Release:


GOVERNOR CUOMO ANNOUNCES MAJOR STEP IN CLOSING CARRIED INTEREST LOOPHOLE WITH NEW “FAIRNESS FIX” TO ENSURE JUSTICE FOR NEW YORK TAXPAYERS


Governor’s Proposal Could Raise More Than $1 Billion Annually


Governor Andrew M. Cuomo today announced legislation to close the carried interest loophole, deliver fairness to all New York taxpayers, and help alleviate the impacts of the Trump administration’s federal tax plan. This proposal will fix and equalize the tax treatment of income for private equity investors. Currently, investors pay lower tax rates than ordinary New Yorkers on their income by way of the carried interest loophole. The “Fairness Fix” could raise nearly $1.1 billion annually.


“While the federal government stacks the deck in favor of the wealthy and corporations at the expense of the middle class, we are taking action to protect hardworking New Yorkers and ensure fairness and equality,” Governor Cuomo said.


“Closing this egregious loophole will further this administration’s efforts to promote economic justice and establish a fair tax code for working men and women across New York.”


Under current federal law, a portion of income earned by hedge fund managers, private equity investors, venture capitalists and certain real estate investors – known as carried interest – is treated as capital gains, rather than as ordinary income. As a result, this income is afforded favorable tax treatment in the form of lower capital gains tax rates. This loophole costs the state approximately $100 million every year.


To ensure justice for New York taxpayers and take proactive measures to fight back against the federal government’s tax plan, the Governor has proposed legislation that would treat this hedge fund compensation as ordinary income for state tax purposes. The legislation would also impose a “Fairness Fix” to close the carried interest loophole under New York State’s tax code. By imposing a 17 percent “Fairness Fix,” every hedge fund manager working in New York State – including those living outside of the state – will be required to pay their fair share and losses under the federal tax code will be compensated. This proposal could raise nearly $1.1 billion annually and help ease the impacts of the federal tax plan.


The legislation puts forward a comprehensive, regional approach to addressing the carried interest issue, taking effect only if Connecticut, New Jersey, Massachusetts and Pennsylvania enact legislation having substantially the same effect as this bill.


Governor Cuomo has advocated for hard-working New Yorkers since day one, as Republicans in Washington threaten the economic future of New York State. The Governor has traveled across New York to warn against reforms to the tax code that would increase taxes on New Yorkers by $14.3 billion.


The Governor’s proposal will build on years of action to reduced tax rates for New York’s middle-class to the lowest level in 70 years. In addition, the progressive income tax rate for taxpayers earning over $1 million, which was enacted by the Governor in 2011, will remain in place through 2019.


In 2016, the Governor enacted a multi-billion-dollar tax reduction that will save New York’s middle-class nearly $6.6 billion in just the first four years, with annual savings reaching $4.2 billion by 2025. Over 4 million taxpayers will see an average of $250 in savings next year alone, and $700 annually when fully effective.

While Illinois was the most ditched state in 2017, we wonder if New York will top that list in 2018… on a dollar tax revenue

As we’ve pointed out before, there is a growing wave of domestic migrants that are abandoning over-taxed and generally unaffordable metropolitan areas like San Francisco, New York, Chicago and Miami in search of better lifestyles in the Southeast and Texas.


As we’ve pointed out before, there is a growing wave of domestic migrants that are abandoning over-taxed and generally unaffordable metropolitan areas like San Francisco, New York, Chicago and Miami in search of better lifestyles in the Southeast and Texas.

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Local News

CA: [Video] Dr. Mike Schmidt Banned from Twitter in Hot Congress Race-Very Curious

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Dr. Mike Schmitt is running for Federal Office in the 49th District of California for a House Seat. He is in the middle of a hotly contested race.  He has been banned from Twitter.

First, he was timed out for 12 hours, then 7 days, now he is banned.  He was posting about a debate between candidates on Obamacare, he said.

“The Most precious free speech we have is political Free Speech,” he said.  “I have no recourse,” he said as he filled out their grievance forms and waits to see if Twitter will answer.

WATCH:

 

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Culture

Trump to withhold “Federal Family Planning Funds” from people who kill babies, Obama’s legacy dead

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Friday, stories about President Donald J. Trump cutting access to taxpayer funds for Planned Parenthood shook the left. The cut could result in over 60 Million dollars of funds being stripped from Planned Parenthood and diverted to Women’s Health Centers.

“Planned Parenthood spends tens of Millions of Dollars on Political activity and performs Abortions. We don’t think taxpayers should be paying for that,” said KellyAnne Elizabeth Conway, Counselor to the President.

WHAT ARE FEDERAL FAMILY PLANNING FUNDS?

Until today, the funds pay for abortions because of Obama’s Pen and Phone. The money they take from us for this program is called “Taxes”.

Department of  Health and Human Services .

2011

2012

2013

2014

2016

Obama says- just give me the money- I am tired of waiting:

2017

Trump undoes Obama- Power back to the People, at the State Level

2018

Trump: “If you perform abortions, you can not get tax money.”

Twitter Reacts

IRONY IS SO IRONIC

The Left feels that killing the child is better “Family Planning” than not getting pregnant at all.

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Business

Soros Newest Investor Of Tesla Bonds

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Tesla looks to have a new bond holder and it’s none other than George Soros. Whatever this mean, Soros has also taken a stake in Crypto-Currencies .

Zerohedge Reports: Amid Elon Musk’s darkest hour in late March – as his stocks and bonds tumbled in price – it seems there was at least one other billionaire willing to buy the ‘blood on the street’.

According to the latest 13Fs, George Soros’ investment firm took a $35 million stake in Tesla’s convertible bonds during the first three months of the year.

As a reminder, convertibles are hybrid securities, either bonds or preferred stock, that can be exchanged for a predetermined number of common shares. That effectively lets an investor participate in stock-price changes, but with the yield and greater security of a fixed-income instrument.

The March 2019 Converts bounced handsomely off those lows – tracking the stock’s divergent bounce – but in recent days has fallen back towards the lows, catching down to the straight bonds record low price.

Full Article

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