Especially now that the news has leaked that hedge fund managers are raking in incredible salaries—some making more than $1 billion a year—Congress is undoubtedly going to be taking a serious look at increasing regulation of hedge funds, The Economic Times reports. And that’s got many hedge fund managers stepping up their political contributions, hiring lobbyists and, in some cases, forming their own political action committees.
In 2000, hedge fund executives donated $576,000 to candidates, according to the
“We’re making a very, very big drive to grow our political action committee,” said John Gaine, president of the
One key question regulators are likely to consider is whether it’s fair to tax hedge fund executives’ future anticipated earnings at the 15% capital gains rate rather than at regular income tax rates, which can be as high as 35%.
Changing the tax code is possible, given the fact many have been criticizing the government in recent years for favoring the wealthy.
In addition, talk has been brewing about restricting the amount of money that pension funds can invest in hedge funds.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
