Sunday, April 04, 2010
The day after the hedge fund results were released, the government reported that unemployment was stuck at 9.7 percent, with 15 million Americans out of work. For most people with a job, average earnings fell by 2 cents an hour in March, to $18.90. To add insult to injury, some hedge fund managers and, more commonly, private equity fund managers are able to pay a much lower rate of tax than the typical working professional. The tax disparity results from an outdated rule that lets a money manager in a private partnership treat a chunk of his fees as if they were long-term capital gains, taxed at a special low rate of 15 percent. Read more here.