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
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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.