Obama suggests 21 billion in hedge fund taxes

Obama, in his last weekly address, suggested that hedge funds along with oil companies should have a tax increase in order to cut the deficit. MSNBC estimates that Obama’s proposal would raise hedge fund manager’s taxes by up to $21 billion.

“If we choose to keep those tax breaks for millionaires and billionaires, or for hedge fund managers and corporate jet owners, or for oil and gas companies pulling in huge profits without our help – then we’ll have to make even deeper cuts somewhere else.” Obama said on Saturday.

Obama’s tax increases include:

• End some tax credits for oil and gas companies
• Tax private equity or hedge fund managers income as earned rather than capital gains rates
• Limit itemized deductions for the nation’s highest earners
• Change the depreciation formula for corporate jets
• Repeal tax benefit for an inventory accounting practice used by many manufacturers

The White House estimates that the changes would raise $600 billion. You can read more about this article at: http://www.hedgeco.net