Rep. Eric Cantor Says Hedge Fund Tax Rate Must Stay Low to Help Small Businesses

In its proposed budget, the White House recommends effectively raising the tax rate on hedge fund managers from 15% to almost 40%. Many Hill Democrats and Republicans back the move. But in a striking stretch of logic, Republican Whip Rep. Eric Cantor recently said increasing the tax would cut off "the lifeblood of small business. Bob McIntyre, head of the nonpartisan group Citizens for Tax Justice disagreed. He said the Presidents proposal would not affect small business.

Under the current system, some billionaire hedge fund managers pay a lower tax rate than average workers, like schoolteachers or firemen. Last time Congress tried to close the loophole, in 2007, Cantor held closed-door meetings with lobbyists to try to block the move. In the end, the proposal got through the House but couldnt pass the Senate.

The prospects of passage are better this time, unless Cantor can whip up enough opposition.

Category:

People & Blogs

Tags:

• Eric Cantor
• Hedge Fund
• Loophole
• Small Business
• Obama
• Budget
• Inequality
• Billionaire

[Weleski]

Hedge funds do not constitute "small business." Small business is when the guy down the street starts an auto body shop or a CPA firm. Hedge funds represent the very type of elitist financial chicanery that caused this crisis. Hedge fund managers are parasites to the productive forces in our economy. They should be heavily regulated and taxed at a much higher rate.

Cantor is simply a pawn for these financial elites. They say "jump," and he says "how high?"

[neverlookback75]

I give it up the ass, and I wouldn't give it to him.

[WikeddTung]

what a cunt. i hate american politics

[70road]

What a douche bag.

[anonymous843e]

did anyone else punch their sister after hearing this bs?

[poopstreek]

Both parties work for Wall St.... Got it?

[poopstreek]

Excuse me, but credit is the problem.

[MengersDisciple]

He DID NOT answer the question asked.

The title is misleading.

[eaj07003]

this dude takes it up the ass