Reuters: Trump Says Tax Code is Letting Hedge Funds ‘Get Away With Murder’

The following is an excellent article written by Sarah N. Lynch on August 23, 2015 on the Reuters website titled “Trump Says Tax Code is Letting Hedge Funds ‘Get Away With Murder'” and I quote:

“Politics | Sun Aug 23, 2015 11:59am EDT

“Trump says tax code is letting hedge funds ‘get away with murder'”

Republican presidential front-runner Donald Trump blasted hedge fund managers on Sunday as mere “paper pushers” who he said were “getting away with murder” by not paying their fair share of taxes.

In a telephone interview on CBS’s “Face the Nation,” Trump vowed to reform the tax laws if elected and said the current system was harming middle class Americans who currently faced higher tax rates than traders on Wall Street.

“The hedge fund guys didn’t build this country. These are guys that shift paper around and they get lucky,” Trump said.

“They are energetic. They are very smart. But a lot of them – they are paper-pushers. They make a fortune. They pay no tax. It’s ridiculous, ok?”

Trump’s comments were referring to the so-called “carried interest loophole” – a provision in the tax code which allows private equity and hedge fund managers pay taxes at the capital gains rate instead of the ordinary income rate.

Many fund managers are in the top income bracket, but the capital gains tax bracket is only 20 percent.

While these individuals are also required to pay an additional 3.8 percent surtax on their net investment income, this total rate is still far lower than the 39.6 percent rate that top wage earners must pay on their ordinary income.

“Some of them are friends of mine. Some of them, I couldn’t care less about,” Trump said.

“It is the wrong thing. These guys are getting away with murder. I want to lower the rates for the middle class.”

Trump did not offer any specific detail on how he would like to reform the tax code, but he is not the only presidential candidate to take aim at the “carried interest” loophole.

Democratic front-runner Hillary Clinton has also previously called for reforms, saying it was wrong that hedge fund managers “pay lower taxes than nurses” or truck drivers. [ID: nL2N0XB31K]

Vermont Senator Bernie Sanders, another Democratic presidential candidate whose progressive agenda has been drawing large crowds of supporters, has also been a vocal critic of the tax loophole.

Among Republicans, Trump has continued to dominate the field of presidential candidates.

A Reuters/Ipsos poll on Friday showed Trump with 32 percent of the support of Republicans, followed by former Florida Governor Jeb Bush with 16 percent, and Ben Carson with 8 percent.

(Reporting by Sarah N. Lynch; Editing by Gareth Jones)”

(THIS IS THE BIGGEST PROBLEM WE’RE HAVING IN THE WORLD ECONOMY. THERE ARE EVEN PEOPLE ON TV PREDICTING THE COLLAPSE MUCH WORSE THAN IN 2008.  THE PRESIDENTIAL DEBATES MUST TALK ABOUT THIS SERIOUS ISSUE.

LaVern Isely, Progressive, Overtaxed, Independent Middle Class Taxpayer and Public Citizen Member and USAF Veteran

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About tim074

I'm a retired dairy farmer that was a member of the National Farmer's Organization (NFO). Before going farming, I spent 4 years in the United States Air Force where I saved up enough money to get my down payment to go farming. I also enjoy writing and reading biographies and I write about myself as well as articles and excerpts I find interesting. I'm specifically interested in finances, particularly in the banking industry because if it wasn't for help from my local Community Bank, I never could have started farming which I was successful at. So, I'm real interested in the Small Business Administration and I know they are the ones creating jobs. I have been a member of Common Cause and am now a member of Public Citizen as well as AARP. I have, in the past, written over 150 articles on the Obama Blog (my.barackobama.com) and I'd like to tie these two sites together. I'm also on Twitter, MySpace and Facebook and find these outlets terrifically interesting particularly what many of these people did concerning the uprising in the Arab world. I believe this is a smaller world than we think it is and my goal is to try to bring people together to live in peace because management needs labor like labor needs management. Up to now, that hasn't been so easy to find.
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