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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Upton & Camp Ready For This?

    By JGillman, Section News
    Posted on Sun Nov 06, 2011 at 12:04:35 AM EST
    Tags: Carried Interest, Michigan Congressmen, Super Committee, Dave Camp, Fred Upton, Real Estate (all tags)

    One of the tax increases that Obama is trying to push through as part of his 'jobs plan' is to tax the shares of profits earned by managers of successful investment funds - called "carried interest" - as income rather than capital gains.  As his attempt to force the plan through the standard Congressional process has crashed and burned, its looking like the proposal will likely come before the 12-member debt reduction super committee.

    NH Journal sums up why this is ridiculous here:

    There is a clear reason for this, as carried interest differs substantially from a traditional salary. Under most agreements, the manager of the investment partnership receives no carried interest if the endeavor fails. The manager is also on the hook for returning the principal from the partners, regardless of his performance. Most workers in our economy do not have to return a significant portion of their salary if they do not accomplish what their colleagues and supervisors expect of them.

    Now, considering Reps. Upton and Camp having seats on the super committee, well.. below ~

    Perhaps they should take a look at how it would affect the weakest part of the economy today.

    While the administration tries to paint carried interest as a benefit for those famous 'millionaires and billionaires' in reality, the real estate market would take the biggest hit as a result of the tax hike:

    Real estate depends on carried interest as a crucial component of its investment strategy. Development of hospitals, hotels, shopping centers and under served neighborhoods carries risks, and partners combine to insure against these risks by granting the general partner the carried interest. This protects against potential holdups, such as construction overruns or changes in public policy.

    Yeah, that sounds like a smart move in this economy.  Let's dry up what little real estate investment we have left.

    Now, Democrats have tried to push this through tax hike before, and faced opposition from such giants of fiscal conservatism like John Kerry. (snort) But the concern is that as the super committee gets increasingly frantic to hit its mark, they'll fall for something like this since its perceived as only hurting "the one percent."  That would be a hugely shortsighted move, especially considering the dire consequences for the real estate market.  Republicans like Upton and Camp need to know that they are being held accountable back home for the actions the super committee takes.

    Frankly a combination of hard spending cuts (Departments of Energy, Education, etc..) and ALLOWING growth is the only way we will escape this economic spiral downward, and the 'super committee' is hardly going to solve the growth part by putting an additional burden on what is currently the poorest performing, yet one of the largest sectors of our economic being.

    But we shall see what our esteemed congress critters will do.

    < And While You Are At It | To Restore Discipline >

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    There you go again, Jason... (none / 0) (#1)
    by KG One on Sun Nov 06, 2011 at 11:04:13 AM EST
    ...thinking small.

    There are billions.

    And billions.

    And billions.

    Oh hell, trillions in savings that can be realized if those who called themselves republicans, actually acted like republicans and stopped the get along to go along philosophy.

    Speaking for myself, those two lack the integrity to even suggest making those cuts.

    • I know.. by JGillman, 11/06/2011 12:58:46 PM EST (none / 0)
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