It's Time for Obama to Bite the Hedge-Fund Sharks : The New Yorker

It's Time for Obama to Bite the Hedge-Fund Sharks : The New Yorker: What about eliminating the egregious tax break that hedge-fund managers like Cohen enjoy? While running for President in 2008, Obama promised to eliminate the so-called carried-interest deduction, which allows managers of hedge funds and private-equity funds to classify much of their income as capital gains, which are taxed at fifteen per cent, rather than as ordinary income, which faces a top rate of thirty-five per cent. But the deduction remains, unchanged. A combination of outright opposition from Republicans, foot-dragging on the part of Wall Street Democrats, and timidity on the part of the Administration allowed the proposed reform to die in Congress.