hedge funds

The Rich get Richer, with a Little Tax Help

Renaissance Technologies, an investment manager, is once again showing how to aggressively manipulate the tax system for its own benefit. This time, Renaissance is helping its owners/employees (who are some of the wealthiest individuals in the country) to shelter tens of millions of dollars in tax-

June 22, 2015Steven M. Rosenthal

: TaxVox

A Showdown, Some Backlash and Big Bets

The Highway Trust Fund is almost out of gas. Congress leaves for its month-long recess on Friday, but without legislative action the fund will run out in August. The Senate is expected to vote on the amended bill this week, though it needs 60 votes to pass. Senate Majority Leader Harry Reid had

July 28, 2014Renu Zaretsky

: TaxVox

ACA Tax Subsidies Face Risk; IRS Enforcement Is Overtaxed

Two appeals courts deliver opposing rulings on Affordable Care Act tax subsidies. The DC Circuit Court ruled yesterday that the tax credits can only go to residents in states that run their own health exchanges. In Richmond, VA, the 4th Circuit Court said the ACA language isn’t clear, so the tax

July 23, 2014Renu Zaretsky

Individual Taxes: TaxVox

Have We Created a Two-Tiered Tax System—One for the Powerful and One for the Rest of Us?

Unlike the rest of us, many high-income, influential people and organizations have close to a free hand when it comes to their taxes. Already underfunded and understaffed, the IRS seems incapable of stopping many aggressive or even abusive interpretations of the tax laws, often by hedge funds or

July 22, 2014Howard Gleckman

Individual Taxes: TaxVox

Abuse of financial products by hedge funds

Today, I testified before the U.S. Senate Permanent Subcommittee on Investigations (the “Subcommittee”) on the abuse of structured financial products by hedge funds, in particular by the Renaissance funds. This is what I told the Subcommittee: Almost a century ago, Congress reduced the tax rate for

July 22, 2014Steven M. Rosenthal