MoveOn.Org commissioned this cartoon to call attention to one of the worst tax injustices of all time … the infamous Hedge Fund Loophole. It allows a highly privileged group of Wall Street traders to earn over $1 Billion a year, yet pay as little as 15% on the their federal income tax. What does the country get back in return for this extra generous tax break?
The answer is ABSOLUTELY NOTHING! Hedge fund traders do not create jobs, build factories, extend credit to growing businesses, fund new energy development, or confer any economic benefit to the country whatsoever. They do, however, fight like hell to keep their tax privileges intact.
Consider this: If you are a hedge fund trader earning in excess of $1 billion a year, the difference between a capital gains tax of 15% versus the top ordinary income tax rate of 35% amounts to $200 million a year. With that kind of money at stake, it is easy to buy off an army of politicians … and still have tons of cash left in your pocket. Killing the tax break would add $14.75 billion over five years and $24 billion over 10 years to the federal treasury … and help lift the burden of spending deficits and taxes from the middle class.
Petition your Congressional representatives and demand an end to this tax injustice.
