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Cuomo Proposes Ending Carried Interest Loophole for Hedge Funds

  • Measure depends on nearby states adopting similar provisions
  • Governor’s statement has scant detail on ‘Fairness Fix’ plan
Bloomberg business news
Lincoln Ellis of Northern Trust and Bloomberg’s Jason Kelly report on a "fairness tax" proposed by Gov. Andrew cuomo.(Source: Bloomberg)
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New York Governor Andrew Cuomo announced plans Thursday to target a tax break for investment fund managers in his state.

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.