Trump to Hedge Fund Guys: “Pay Your Fair Share!”

August 25, 2015 James Heinsman Hedge Fund News

Donald Trump, Laconia Rally, Laconia, NH by Michael Vadon July 16 2015. Photo by Michael Vadon

Donald Trump, Laconia Rally, Laconia, NH by Michael Vadon July 16 2015. Photo by Michael Vadon

It seems nothing and no one is beyond Donald Trump’s ability to bombastically insult or single out for scorn. Last month it was immigrants, last week it was women, and this week its hedge fund managers. Trump says that he is ready to reform the tax code to get the managers to pay up their fair share.

Looking for some descriptions with just the right flavor, Trump chose to call hedge fund managers “paper pushers,” who can ease the tax burden of the middle class by just paying their taxes in a fair way.

“The hedge fund guys are getting away with murder. They’re making a tremendous amount of money. They have to pay taxes. I want to lower the rates for the middle class. The middle class is the one, they’re getting absolutely destroyed. This country doesn’t have—won’t have a middle class very soon,” Trump told CBS News.

Trump was even able to back up his comments with a real-life example of a loophole he is ready to fill if he gets elected president. Known as the “carried interest loophole,” this is a provision allowed by the tax code which lets private equity and hedge fund managers pay their taxes at the same rate as capital gains instead of at the rate of ordinary income. The difference is almost double: capital gains tax rate is only 20 percent, while the bracket many, if not most hedge fund managers would find themselves in is most like hovering around 39.6 percent.

On this subject Trump sounds more like a Democrat than a Republican contender. Hillary Clinton expressed a similar sentiment without the insults saying last May that, “something is wrong when CEOs earn more than 300 times than what the typical American worker earns and when hedge fund managers pay a lower tax rate than truck drivers or nurses.” Bernie Sanders has made tax inequality a cornerstone of his campaign rhetoric.

Bernie Sanders, Donald Trump, hedge fund managers, Hillary Clinton, taxes,

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