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article8 - there return on an investment made When it is...

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http://gregmankiw.blogspot.com/2007/07/blinder-on-taxing-carried-interest.html There are to parts on the article. First Blinder discussed carried interest and how they are different from capital gains. Then he goes on and discusses why capital gains shouldn't be taxed differently than other sources of income. He tries to argue on economic grounds why capital income tax should be higher but he does a very poor job. My read on this leaves me with two cores therefore two core issues. Issue one, hedge fund managers are tax cheats, treating ordinary bonus compensation as if it were
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Unformatted text preview: there return on an investment made. When it is more akin a commission on top of a base salary, like a car salesman might be paid. The second issue he raises is the difference in tax rates, between the marginal income and the capital gains. To be truly fair and to eliminate distortions, the capital gains should also be levied on unrecognized gains. It is amazing that the only people who are advocating equalizing capital gain tax rate with ordinary income tax rate are American democrats like this Blinder fellow...
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