Re:The Income Rich Take One For The Team. Thanks!
by prostoalex on Wednesday January 02, 2013 @05:37AM
(#4996084)
I must say this is a pretty weak argument. However honorable the activity is, he's still a hired gun.
Another question you have to ask - if his income was subject to income tax versus a LTCG tax that's currently in place, would he stop doing what he does? Reading his original post, most likely not. Maybe he'd raise a larger fund next time to justify the 2/20 fee structure, maybe the structure will be changed to 5/20, but investors will still chase the yield, and there will be someone on the receiving end happy to accept investors' money.
Another question you have to ask - if his income was subject to income tax versus a LTCG tax that's currently in place, would he stop doing what he does? Reading his original post, most likely not. Maybe he'd raise a larger fund next time to justify the 2/20 fee structure, maybe the structure will be changed to 5/20, but investors will still chase the yield, and there will be someone on the receiving end happy to accept investors' money.