How will Obama's tax proposals effect CODI and us as limited Partners?
I read some text related to Obama's proposed tax increases on Limited Partnerships and Hedge Funds. Does anyone who has a deeper understanding of the tax codes able to shed some light/context on how we may be affected if it passes?
Off the top of my head, I would say it's to close a loophole that was really badly abused for a long time. This was the practice of hedge fund managers and LLC partners taking salary in the form of special dividends, which were taxed at the 15% qdi rate. It allowed people like Schwartzman at Blackstone to be paid hundreds of millions over time with a tax rate lower than the average middle class family. It was one of the key factors in the widening income gap between the top 1/2% and the average working stiff. Obama vowed long before the election to take care of this. Some hedge fund managers actually tried to defend the practice with a straight face but nobody took them seriously. My guess is that's what this is about and nothing else.