Taxes

Should Carried Interest Be Taxed as Ordinary Income?

Investment firms include private equity funds (which raise capital to invest in start-ups or existing businesses) and hedge funds (investment funds that specialize in certain investments such as debt…

The Myth of Financial Reregulation

The regulatory reform bill currently before Congress will supposedly impose financial reregulation, reversing the alleged deregulation of the past 30 years.  What deregulation?  Can anyone point to th…

Should You Convert to a Roth IRA?

Millions of Americans are saving for retirement in 401(k)s and Individual Retirement Accounts (IRAs). These accounts allow people to invest pretax dollars, but require them to pay taxes on their depos…

TARP: A Loan Not a Gift

In October 2008 Congress passed the Emergency Economic Stabilization Act of 2008. The act created a $700 billion Troubled Asset Relief Program (TARP) aimed at preventing a meltdown of the banking syst…

What about Those Deficits?

Each year, foreign governments and investors increase their holdings of U.S. debt. In effect, they are lending the United States money to finance its excess of imports over exports. However, continued…

New Taxes on the Wealthy Are Bad News for Everyone

The new health care law will substantially increase the tax burden of high-income workers and small businesses over the next few years.  Those tax increases could be piled on top of other tax increase…

The Politics of Estate Tax Reform

If it seems as if Congress has been wrangling over the estate tax for decades, that is because it has. Though majorities in both houses of Congress have supported repeal and the law has been changed f…

The High Marginal Cost of the Estate Tax

The estate tax is not yet dead, by a long shot. Federal taxes on estates fell as a result of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). In fact, the estate tax will even d…