Meanwhile, $15.6 billion that could be going to schools, to clean energy investments, to repairing our nations crumbling infrastructure, instead sits in the vaults of multimillionaires.
Fed up with congressional inactivity, states are now getting serious and creative about the issue. They cant change federal taxation statute, but they can mitigate the damage it does by repatriating lost revenue. Some are well into the process, pushed along by Hedgeclippers and other groups standing up for the rest of us.
Several eastern states and Illinois are already well along that track with legislation that taxes the carried interest income of hedge fund and private equity partnerships headquartered in their states.
New Yorks proposal would get around this congressional inaction by raising nation income taxes on private equity and hedge-fund partners who live in New York. The increase would be equal to the tax savings they receive from use the loophole at the federal level. The intent is for the tax increase to take effect once various states have shut the loophole. That route, the tax could not be avoided by moving to a neighboring state.
Closing the loophole would raise $3.7 billion a year in New York.Estimated annual revenuewould be $ 938 million in Massachusetts, $535 million in Connecticut and $112 million in New Jersey.
Labor, community and activist groups are constructing coalitions to spread the movement to other states including California, DC, Pennsylvania, Virginia, Ohio and Minnesota. Check out how much money all the states stands to gain here. Then check out the Hedgeclippers and see how you can help.
Read more: www.huffingtonpost.com