Go to content Go to navigation Go to search

August 01, 2008

Hedge-Fund Managers Could Get Charitable-Giving Incentive

Tax bills proposed in both the House and Senate would give hedge-fund managers a generous new tax deduction for charitable donations as a way to promote philanthropy.

Under the proposed tax-extender bills, hedge-fund managers would be allowed to receive a full tax write off for every dollar they donate to charity — up to 100 percent of their deferred compensation.

Other taxpayers are allowed to deduct donations up to 50 percent of their annual income.

Sen. Charles Grassley, the Iowa Republican who is the ranking minority member of the Senate Finance Committee, calls the proposed deduction for hedge-fund managers unfair.

“Everyone is obviously in favor of charity, but treating wealthy hedge-fund managers better than your average American makes no sense from a tax-policy perspective,” Mr. Grassley said in a written statement.

— Peter Panepento

Friday August 1, 2008 | Permalink

Comments

1. I’m with Grassley on this…
   everyone should get the massive deduction talked about. It would be a big WOW! If they give it just to the hedge fund guys, regardless of their ability it is, as the Senator says, ‘unfair’

   — Roberta d'Eustachio    Aug 4, 02:33 PM    #

2. This has to be a joke, right? It reminds me of a great idea I once read except turned on its head. The proposal was that an individual’s personal tax rate should be based on the social value of the way in which s/he makes a living. So tax rates would range from 1% for hospice care providers
   to 100% for professional golfers.

   — Brisket Boy    Aug 4, 03:37 PM    #

Commenting is closed for this article.

Previous: Foreclosure Law Includes New Federal Money for Housing Groups
Next: Government Asks Public for Views on Charity Student-Loan Forgiveness Rules

---

Copyright © 2009 The Chronicle of Philanthropy