Contact: John Hartgen
703-739-0800
HEDGE FUND
INVESTMENT GAINS SHOULD BE TAXED AS ORDINARY INCOME, ACCORDING TO LATEST
November 21, 2007,
Alexandria, Va. —A majority of respondents (71 percent)
to
poll agreed that investment gains of hedge funds should receive the same
tax treatment as ordinary income for the performance of services, rather
than the lower capital gains rate they currently receive. Fifty-six
percent of respondents “strongly agreed” and 15 percent
“somewhat agreed” that hedge fund investment gains should be
taxed as ordinary income rather than the lower capital gains rate under
current law.
Twenty-one percent of
respondents, however, indicated that hedge funds should continue to be
taxed at the lower capital gains rate rather than as ordinary income for
the performance of services. Fifteen percent “strongly
disagreed” and 6 percent “somewhat disagreed” that
hedge funds should be taxed as ordinary income. Five percent of the
respondents did not know or had no opinion on the issue.
The House of Representatives
recently passed H.R. 3996, the “Temporary Tax Relief Act of
2007,” that would change the current tax code to treat the
taxation of hedge fund investment gains as ordinary income, rather than
the current lower capital gains rate. The bill, sponsored by House Ways
and Means Chairman Charles Rangel (D-N.Y.) passed the House on Nov. 9,
after a number of congressional hearings and proposed bills earlier this
year highlighted the lower taxation rates on the lucrative gains of
private equity.
size='3'>ABI
were welcome to submit their response to the statement: “In terms
of the tax treatment of hedge funds, investment gains should be treated
as ordinary income for the performance of services, rather than
(currently) at the lower capital gains rate.”
size='3'>ABI
title='blocked::http://www.abiworld.org/'
href='http://www.abiworld.org/'>www.abiworld.org.
w:st='on'>ABI
respond to a question on a timely bankruptcy or insolvency issue. Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff'>http://www.abiworld.net/quickpoll/ to access
the results of previous
Quick Polls.
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ABI is the largest
multi-disciplinary, nonpartisan organization dedicated to research and
education on matters related to insolvency. ABI was founded in 1982 to
provide Congress and the public with unbiased analysis of bankruptcy
issues. The ABI membership includes nearly 11,500 attorneys,
accountants, bankers, judges, professors, lenders, turnaround
specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
ABI, visit www.abiworld.org. For additional conference information,
visit
href='http://www.abiworld.org/conferences.html'>
size='3'>http://www.abiworld.org/conferences.html.