Why Pension Funds Are Hooked on Private Equity
When President Obama unveiled his budget last Wednesday, it rekindled a debate over taxation of the private equity industry. Many executives in the private equity business (as well as the venture capital and hedge fund businesses) pay the capital gains rate on their earnings rather than the higher rate paid on ordinary income. Even though these industries make most of their money from the appreciation of assets — the definition of “capital gains” — the President, and many others, believe it is unfair that employees of these funds are able to pay the capital gains rate. After all, these execs are getting paid to manage these funds, not for risking their own capital. Of course, the private equity industry isn’t going to take such a tax hike lying down. According to Politico, the Private Equity Growth Capital Council recently sent a white paper to the House Ways and Means Committeer extolling the benefits of private equity for America’s pension funds. According to the paper: “Since ...
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Obama’s Budget Would Cap Tax-Advantaged Savings
Some of us have worried for decades that when America’s tax-advantaged savings pot got large enough, our perpetually revenue-challenged federal government would raid the nest egg. All that untaxed growth would simply prove irresistible. That day may be at hand. President Obama’s budget, just sent to Congress, proposes to cap tax-advantaged savings across all accounts at $3 million in order to raise $9 billion over 10 years. The proposal is being spun as a way to prevent wealthy private-equity executives from amassing huge IRAs—like Mitt Romney’s, once estimated to be worth as much as $100 million. But it would also curb the savings ability of self-employed professionals like doctors and lawyers. As these business owners reach the cap, and there’s nothing left in it for them, they might shut down or reduce plans that benefit their employees. (MORE: Young Workers with a 401(k) Finally Get Diversified) The cap proposal is a clear play to unlock some of the $10 trillion sitting in ...
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Keeping Obama's machine -- and mailing list -- going
Tonight, President Obama speaks to the non-profit group, Organizing, for America, which some have described as the president's never-ending campaign. Where is the money behind the organization coming from?
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Video: On heels of the SOTU, Obama pushes manufacturing
During his State of the Union address, President Obama said "our first priority is making America a magnet for new jobs and manufacturing." And, as Major Garrett reports, the president toured a factory in North Carolina to drive that message home.
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Found more than 1 month ago on channel
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Video: Obama mentions Apple Inc. in SOTU
In mentioning the economic recovery, President Obama mentioned that Apple Inc. will begin building Mac computers in America while Apple CEO Tim Cook was in attendance.
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Found more than 1 month ago on channel
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