Headlines

U.S. coronavirus cases pass 3 million

JP Morgan’s strategist Kolanovic sees new highs as hedge funds jump in

CDC might stop calling COVID an ‘epidemic’ because of major drop in mortality rate

New York Times publishes Socialist economic manifesto

Alex Vindman, key impeachment witness, retires from military

Trump threatens to cut funding for schools, slams CDC reopening guidelines as too tough, expensive

Tucker Carlson blasts ‘fraud’ Tammy Duckworth

Omar calls for dismantling of America’s economic and political systems

New Jersey to require face coverings while outdoors

New York Gov. Cuomo blasts Trump on school reopening: ‘It’s not up to the president’

Brooks Brothers files for bankruptcy

Shootings triple in Mayor de Blasio’s New York City

Headlines

California may test state lawmakers before they return to Sacramento

Coronavirus live update: California launches meal delivery program for seniors, US death toll tops 50,000

CBO predicts 10.1% unemployment — through 2021 ...

“Thank you very much’ — Donald Trump leaves briefing without taking questions

Newsom executive order tests Constitutional bounds — and legislative goodwill

Trump tries to walk back speculation about injecting disinfectants to fight coronavirus

Poll: 48% believe gov’t covering up true number ...

Trump administration bars hedge funds and private equity from rescue loans

Deficit to soar to nearly $4T as economy buckles, CBO says

As working from home becomes more widespread, many say they don’t want to go back

The coming deurbanization of USA?

Peter Schweizer: Hunter Biden still owns ten percent of Chinese firm BHR

Headlines

Trump: Drug companies to announce 'massive' price cuts soon

China reportedly lining up countries against US in pending trade war

Summer surge: 100,000 illegals arrested on border in just two months ...

... Ambien drug maker to Roseanne; 'Racism is not a known side effect'

California Republicans hit rock bottom

These hedge fund managers made more than $3 million a day last year

Judge [Kimba Wood] blasts Stormy lawyer 'publicity tour'

Half million sign #FreeTommy petition

'Murdered' Russian journalist turns up alive

Tesla Model 3 gets Consumer Reports recommendation after breaking update

Elizabeth Warren praises communist Chinese gov't ...

Scientist create first 3D-printed corneas

Carried Interest

I, along with (seemingly) President Obama, have long been an opponent of the “carried interest” tax treatment on the earnings of hedge-fund managers (for my detailed argument, see: Fewer Happy Returns).  In fact, I believe that this has been one of the driving forces behind our President’s “fairness” obsession to raise taxes.  (Or maybe he is just using it as a convenient excuse?)  This January he already has gotten the capital gains rate increased from 15% to 20% … I suspect, among other things, in order to increase the taxes on carried interest … i.e., tuck it to hedge fund managers.  But, in the process, he is also screwing ordinary middle-class investors.

However, of late I have been curious about how this favorable tax treatment came into being.  I first went to Wikipedia (see: Wikipedia Entry ) where I did not find its genesis … but it does say that it has been an issue since the mid-2000s.  My suspicion is that this tax treatment was initiated within the IRS itself.  As per the Wikipedia entry, there apparently were some unsuccessful attempts by the Democrats to erase this rule in the 2008 to 2012 time frame.  Moreover, there was actually such a law passed in the Democrat-led House of Representatives in 2010 … see: Gibson Dunn Comments.  Curiously, it apparently died (as most things did) in the Harry Reid (D, Nevada) controlled (with an iron hand) Senate.  So, like many controversial issues, the Democrats have been able to have their cake and eat it too.