Here we go again, screwed, blued and tattooed by another genus of the rich folk: hedge fund managers. The top 25 managers earned … drum roll, please…14 billion dollars last year, that’s with a B. But here’s the good part: they only paid 15 percent tax on their earnings–whereas you and I pay 30-35 percent. This hundreds of millions o’ bucks sleight of hand is accomplished by claiming that the earnings are capital gains instead of income. Furthermore, these powerful people are spared the inconvenience of any of the Social Security taxes and Medicare taxes that the rest of us are burdened with.
Understand me. I’m not saying they don’t pay FICA on all of that 14 billion. They don’t pay any FICA.
This tax loophole should be closed, but Congress dithers.
Let’s see. I’m no math whiz, but I think that another 15 percent in taxes on $14 billion would come to $2.1 billion. You could fix a few bridges with that kind of scratch.