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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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“If you can’t manage a campaign, how do you manage the country?”: Chuck Todd schools Bernie Sanders

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In a segment Thursday on MSNBC, network host Chuck Todd slammed Democratic Senator Bernie Sanders for allowing sexual misconduct to occur inside his 2016 presidential campaign.

“Could this derail his chances of another presidential bid,” host Chuck Todd wondered before playing a video clip.

“Boy, that is a tough answer to defend of course,” Todd said referring to Sanders telling CNN’s Anderson Cooper in an interview that he didn’t know about ongoing sexual misconduct because he was “a little busy running around the country trying to…make the case.”

“Because if you’re running to be president of the United States…if you can’t manage your campaign, how do you manage the country,” Todd continued. “No potential 2020 candidates had a worse start to 2019 than Bernie Sanders”

WATCH:

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Michael Cohen, former Trump attorney, accepts Democratic invitation to testify before Congress next month

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Michael Cohen

WASHINGTON — Michael Cohen, President Trump’s former personal attorney, who implicated his former boss and the now-president in a federal crime, has accepted an invitation from House Democrats to testify before the House Oversight and Reform Committee early February — just shy of a month before he must report to federal prison to serve his sentence for violating federal campaign finance law, lying to Congress, and tax evasion.

“In furtherance of my commitment to cooperate and provide the American people with answers, I have accepted the invitation by Chairman Elijah Cummings to appear publicly on February 7th before the Committee on Oversight and Government Reform,” Mr. Cohen said Thursday in a statement. “I look forward to having the privilege of being afforded a platform with which to give a full and credible account of the events which have transpired.”

Mr. Cummings, 67, said Thursday that his committee was “in the process of consulting with Special Counsel Mueller’s office” to confirm that Mr. Cohen’s testimony wouldn’t conflict with Mr. Mueller’s ongoing investigation into Russian interference in the 2016 election. “I want to make clear that we have no interest in inappropriately interfering with any ongoing criminal investigations,” he said in a statement.

Mr. Cohen, who served as Mr. Trump’s fixer for over a decade, once famously said that he would “take a bullet” for Mr. Trump. However, within the last several months, Mr. Cohen has turned on his former boss, offering partial cooperation to Mr. Mueller.

Mr. Cohen was sentenced to three years in prison last month by a federal judge in Manhattan after entering into a plea agreement on Nov. 29 with prosecutors in the Southern District of New York. In his guilty plea, federal prosecutors did not, in exchange for his cooperation, downgrade sentencing recommendations. Mr. Cohen voluntarily offered his cooperation to Mr. Mueller and his team of assistant prosecutors.

Mr. Cohen ultimately spent over 70 hours behind closed doors with federal prosecutors — both from the Southern District of New York and members of Mr. Mueller’s team, who are probing whether the Kremlin, with or without the assistance of Mr. Trump’s campaign, sought to influence the 2016 presidential election. In response to his cooperation with prosecutors, Mr. Trump has called his former attorney, Mr. Cohen, a “weak man.”

Mr. Trump has thus-far said he did “nothing wrong,” and accused Mr. Cohen of misconduct and lying in an attempt to receive a reduced sentenced. In legal filings, federal prosecutors have not directly named Mr. Trump — referring to him as a “candidate for federal office,” and “Individual-1.”

“I take full responsibility for each act that I pled guilty to: The personal ones to me and those involving the President of the United States of America,” Mr. Cohen said last month at his sentencing hearing. “I have been living in a personal and mental incarceration ever since the day that I accepted the offer to work for a real-estate mogul whose business acumen that I deeply admired.”

When asked on Thursday whether he was concerned about his former attorney testifying to Congress, Mr. Trump said: “I’m not worried about it at all, no.”

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‘Second Chance Voters’ Campaign in Florida To Help Felons Vote and Get Jobs

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Today a new campaign is officially launching in Florida for encouraging Felons to vote, increasing their opportunity through jobs, and lessening the stigma around the issue of felons voting. The ‘Second Chance Voter Campaign’ is lead by experienced Councilman Steve Nadine. With an official launch on their website here at www.SecondChanceVoters.org , you can see the intent of the organization and goals set forth.

Karyn Turk of Red America Radio and Populist Wire is also a leading effort in the campaign, she says

“Although many of us were not for, Amendment Four, before it passed. As Republicans it is of extreme importance that we motivate these voters. This new population is a great opportunity for the GOP. We must work with these voters to educate them on republican candidates and important initiatives”

The Press Release States:

Second Chance Voters is led by Steve Nadine. Steve previously served as a County Commissioner and City Councilman and has also served on Alabama’s Sentencing Commission. These experiences have given him a unique and highly qualified credible resume especially in light of his status as an ex-felon and who served his time and probation.

Second Chance Voters will also be a proactive in leading the efforts to work with local and state leaders to effectively and efficiently implement the important components of The First Step Act:

Second Chance Voters will focus their efforts on the following:

Registering ex-felons and their families to vote.

Creating workforce development programs to provide employment opportunities.

Working with Local and State Leaders on tax incentives and tie-ins with economic development organizations to educate and train those incarcerated in local, state and federal prisons, a step critical to reducing recidivism.

Proving guidance on prison, probation and prosecution reform after the First Step Act is implement.

Creating outreach programs for at risk ex-felons and those who are scheduled to be released.

Conducting research on how The First Step Act reforms will effect local, state and federal prosecution and how it will impact the currently under-funded prison systems.

Launching a “Reforming from Within” initiative which will focus on how vitality important it is to educate the ex-felon and those set to be released that this is their Second Chance to proactively participate in their communities and that they can exercise those rights through voting.

Educating the public about the stigma and discrimination faced ex-felon including efforts to ban “checking the box.” These include the many jobs and professions from which they are restricted.

Lobbying in all states that currently restrict ex-felon voting rights.

A lot of what this Campaign is doing is holding politicians like newly elected Governor Rob Desantis to not hold up this right for Felons who have completed their sentence, fine, and probation. It’ll make sure the rights of Felons are restored as soon as possible, as close to the original intent of Amendment Four. This is going to empower any individual who takes it upon themselves to get their rights that had been previously been disenfranchised.

Founder of the Campaign, Steve Nadine is no newcomer when it comes to politics and especially this issue. Steve has an extensive record as the he was at the forefront of the battle to give rights to ex-offenders. He was most important in creating the ‘Jump Start’ program which offered jobs and opportunities to juvenile offenders who were completed a military-style boot camp.

This will be a great way to not only help felons get on their feet but help realize their larger role in a Democratic society that has left them out of the process.

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