So currently the LT capital gains tax is 23.8%. Word on the street from my PM is that you have to cough up another 10% for state income tax (assume Cali/NY) and we are at ~34%.
Does anyone feel this is messed up? We are all working hard to make it to the capital side of the tax divide by getting a carried interest PM contract and it feels so meaningless. They should just abolish carried interest taxation as capital gains since apparently it doesn't matter anyways. And how do some hedge funders and Buffet keep their taxes in the teens?
