Raising Taxes

Increased Taxes for Hedge Fund Managers

Both Jeb Bush and Donald Trump propose a tax increase for Hedge Fund Managers. The proposed tax would require the classification of income earned as income rather than gains on investment as the tax is currently classified. Bush proposes a reform of the carried interest policy which allows profits from managing funds to be taxed as as investment gains rather than earned income. This along with other reformations of the tax code are proposed by both Bush and Trump. These reforms come as a surprise to many as Bush and Trump are no strangers to wall street and are aware of the various loopholes used by hedge fund managers to avoid paying taxes. Increasing taxes on income earned by hedge fund managers will result in greater taxes earned which could be reinfused into the economy. As many politicians have mentioned throughout the course of their campaigning a reform of the tax code is necessary to properly allocate resources. The codes expensive policies allow for individuals with access to tax specialists to take advantage of various loopholes within the code which take away from the benefits that should exist under the code. An increase in taxes for those who can afford to pay inversely effects lower income individuals that pay regressive taxes that they cannot afford. An increase in the taxes of income of individuals who can afford to pay would result in great benefit for individuals that are unable to afford to pay regressive taxes. http://www.cnn.com/2015/09/08/politics/jeb-bush-tax-proposals/