Wednesday, August 1, 2007
Private Equity- How It Affects YOU!
If you read nothing else this month, read this entire article, by clicking the link below...
Life is unfair. And we Americans prefer it that way. But only, finally, up to a point. Sooner or later some of our shrewdest, luckiest financial hustlers push their luck and overreach, and respectable society decides that a red line has been crossed. Shame is rediscovered. And this summer, we’ve reached one of those uproar points. The freshly derided plutocrat-racketeers are the men, a plurality of them New Yorkers, who run the biggest private-equity funds. As the Blackstone Group and KKR have rushed to go public, the world at large has learned that most of the fees they charge are taxed not as ordinary income, at a rate of 35 percent, but as capital gains, at a rate of 15 percent. Thus do the staggeringly rich get staggeringly richer.