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Posted by Seth on May 2, 2008, 2:15 pm
Please log in for more thread options >This is similar to the debate facing hedge fund managers.
>They claim because the underlying business is investing,
>their percentage of the gains (typical 20%) is really investment
>income ratehr than earned income and should be taxedas such.
>That lowers taxes by half.
That's not the general case, and it doesn't lower taxes by anywhere
near that much (it's short-term gains, taxed like earned income except
for Medicare).
It's actually the investment fund managers (venture capital) who try
that trick, claiming their cut is long-term capital gains.
Seth
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