Rubin: Boost hedge managers' taxes

Hedge managers should pay more than double their current tax rate, said a former Treasury secretary.
JUN 13, 2007
By  Bloomberg
Hedge fund managers and private equity partners should pay more than double their current tax rate, said Robert E. Rubin, former Treasury secretary, according to published reports. "It seems to me what is happening is people are performing a service, managing peoples’ money in a private equity form, and fees for that service would ordinarily be thought of as ordinary income,” Mr. Rubin said, speaking yesterday at a tax reform conference arranged by the Hamilton Project in Washington. He was answering a question as to whether the 20% fee on profits managers earn should be taxed at the 15% capital gains rate or raised to the income tax rate of 35%, the Times reported. Mr. Rubin, now Citigroup’s chairman of the executive committee, said he was expressing his own views and not those of his employer. The issue has caught Congress’s eye, as it searches for revenue sources. Several months ago, staffers with the Senate Finance Committee began examining taxes on the 20% fees, plus other tax issues in the hedge fund and private equity sphere, Bloomberg said.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.