New York Governor Andrew Cuomo announced plans yesterday to target a tax break for investment fund managers in his state, Bloomberg News reported. The proposal would impose a 17 percent “Fairness Fix” tax on hedge fund and private equity managers’ compensation — reflecting the difference between a 20 percent federal rate that such earnings often qualify for and the top 37 percent rate it would face if it were treated as ordinary income, according to Abbey Fashouer, a Cuomo spokeswoman. The “fix” would apply to those managers working in New York state, including those living outside the state, according to a statement from Cuomo. The statement says the change “could raise $1.1 billion annually.” The measure would take effect only if Connecticut, New Jersey, Massachusetts and Pennsylvania enact similar legislation, according to the statement.
