Carried interest

Seems almost ridiculous to have to point out the nonsensical arguments emanating from the hedge fund managers fighting by idiot proxy to keep their tax loophole, but the level of disinformation has reached a fever pitch. It must be that obscure names like hedge fund and all the zeroes involved make folks believe that this is complicated.

It's not.

Carried interest is simply the part of the hedge fund managers income at risk, much as the tips a waitress at a nice restaurant might receive. If the hedge fund manager or waitress improves the investment, be it dinner or dollars invested in emerging markets, then a bonus could be in order. Hedge fund managers have it in writing, tied to fancy metrics that usually go up regardless of their meddling. If the waitress could capture the extra benefit provided due to great service, and could contract a defined fee for that service before the meal, would the Senate be demanding that these tips be taxed at the 15% capital gains rate? Yeah, doubtful.

And my already taxed income dollars go to pay those tips, so the double taxation bit won't fly either.