The complexities of our tax system sometimes obscure the nature and severity of wrongdoing. Using a charity to achieve self-enrichment, though, is tax fraud. Those who do it knowingly and systematically belong in jail. There is serious societal danger in treating it any other … [Read more...]
Is There Really a Tax Loophole for Hedge Fund Managers?
Almost two years ago, I wrote a piece entitled “Do We Really Need A Special Tax Break for Hedge Fund Managers?” After briefly explaining how “carried interest” works, it argued that anyone less rich and powerful trying to pull of such a capital gains switcheroo would end up in … [Read more...]
Let’s Get Rid of “Carried Interest”
In July I wrote a piece criticizing the tax break for what is referred to as “carried interest.” That topic is back in the news because President Obama’s proposed budget suggests we might eliminate it. Why does our tax code include this tax preference? What purpose does it … [Read more...]
A Luddite’s Plea for a Less Complex Tax System
Just how much complexity can we tolerate? The question might serve as a general comment on contemporary life but, in this case, it is specifically targeted at the tax code. We are rapidly moving from an absurd level of complication to something more troubling – complexity that is … [Read more...]