{
  "id": "RS22689",
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      "id": 428623,
      "date": "2014-03-07",
      "retrieved": "2016-04-06T20:36:22.581989",
      "title": "Taxation of Hedge Fund and Private Equity Managers",
      "summary": "Private equity and hedge funds are investment pools generally available only to institutions and individuals able to make investments in excess of $200,000. Private equity funds acquire ownership stakes in other companies and seek to profit by improving operating results or through financial restructuring. Hedge funds follow many strategies, investing in any market where managers see profit opportunities. The two kinds of funds are generally structured as partnerships: the fund managers act as general partners, while the outside investors are limited partners. Fund managers are compensated in two ways. First, to the extent that they invest their own capital in the funds, they share in the appreciation of fund assets. Second, they charge the outside investors two kinds of annual fees: a percentage of total fund assets, and a percentage of the fund\u2019s earnings. The latter performance fee is called \u201ccarried interest\u201d and is treated as capital gains under current tax rules.\nSince the 110th Congress, concerns have been raised that the current tax rules are inequitable and inconsistent with some tax policy principles. Proposals that address this concern have focused on taxing some portion (or all in some cases) of carried interest as ordinary income. In the 113th Congress, the Tax Reform Act of 2014 would tax carried interest, exempting income earned from real estate, as ordinary income. S. 268 and the President\u2019s FY2014 Budget Proposal would tax carried interest as ordinary income, while taxing another form of compensation, known as enterprise value, as capital gains income. According to the Joint Committee on Taxation, the provision in the Tax Reform Act of 2014 would raise $3.1 billion in revenue in the FY2014-FY2023 budget window, while the provision in the President\u2019s FY2014 Budget Proposal would raise $17.4 billion in revenue in the FY2014-FY2023 budget window.\nThis report discusses the major issues surrounding the tax treatment of hedge fund and private equity managers and will be updated as legislative developments warrant.",
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      "source": "University of North Texas Libraries Government Documents Department",
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      "id": "RS22689_2013Jun20",
      "date": "2013-06-20",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Taxation of Hedge Fund and Private Equity Managers",
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      "topics": [
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          "source": "LIV",
          "id": "Taxation",
          "name": "Taxation"
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        {
          "source": "LIV",
          "id": "Tax policy",
          "name": "Tax policy"
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        {
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          "id": "Hedge funds",
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          "id": "Finance",
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      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc821207/",
      "id": "RS22689_2010Jun03",
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      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc822409/",
      "id": "RS22689_2009Dec03",
      "date": "2009-12-03",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Taxation of Hedge Fund and Private Equity Managers",
      "summary": "This report provides background on hedge funds and private equity and summarizes the tax issues.",
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          "name": "Hedge funds"
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      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc810630/",
      "id": "RS22689_2008Jul08",
      "date": "2008-07-08",
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      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc815420/",
      "id": "RS22689_2008Jun23",
      "date": "2008-06-23",
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      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc821648/",
      "id": "RS22689_2007Jul05",
      "date": "2007-07-05",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Taxation of Hedge Fund and Private Equity Managers",
      "summary": "This report provides background on hedge funds and private equity and summarizes the tax issues.",
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          "id": "Comprehensive health care",
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          "id": "Tax credits",
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  "topics": [
    "Economic Policy"
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}