While strongly supported by some
"I could not believe it when I saw the proposal," said
McGuire said the state has the third largest concentration of hedge funds in the world with more than 400 funds that are currently managing
The bill would impose "a surcharge on income derived from investment management services" that would cover investors from all income levels, but lawmakers said the big money would be derived from hedge funds.
The proposal is facing a tough battle because
Hedge fund representatives said that high-profile,
Since Tuesday's hearing was being reported in the international business press, the
"If it wasn't for your industry, we would be insolvent," Frantz told the hedge fund representatives. "It doesn't pollute. It doesn't take up a lot of space."
But Mark Krauchik, president of
"My fear is you continually come after the state and municipal workers," Krauchik told the committee. "It's basically coming after the middle class again. The middle class is frustrated. … We feel the middle class is being punished, along with the state and municipal workers."
"I look at it as an equity thing for those of us who are working stiffs," Morin, 56, said. "I don't have the ability, at this stage of my life, to change how my income is taxed. … This bill, or some form of it, may address those issues of equity."
Lawmakers said hedge fund managers are already paying a maximum state income tax rate of 6.99 percent on their income, and the 19 percent surcharge would be added on top of that. But Sen.
"The actual person who will be paying this tax are the seniors or those who are retiring who are rolling over their pension," Boucher said. "My concern is we're taxing the public that has to make use of these [investment] services. They have to rely on the experts. It's really taxing the customers, not the individuals you are focusing on."
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