Most Americans are unaware of the fact that hedge fund managers pay 15% in taxes on the bulk of their earnings. Managers typically receive a standard 2 percent advisory fee based on the total value of the fund. This fee is paid at the higher income rate of 35%. They also receive 20 percent of the annual profits. This is where the bulk of their money is made and it is taxed at the 15 percent capital gains tax rate.... REALLY!
Now you understand why hedge funds and private equity firms fight so hard against tax rates going up.... REALLY.
This Man Made $4 Billion Dollars Last Year And Paid Less Taxes Than You
