For years, hedge-fund executives and other money managers had a sweet deal. They could come into New York, make piles of money, then slide back out to the 'burbs, where they could justify their feelings of bridge-and-tunnel uncoolness by gloating that at least they didn't have to pay New York's stupid "carried interest" tax — a levy on profits gleaned by managing assets. But those days might be done. The state has been sitting around at Grand Central Station watching these human dollar signs move past them for a while now, and they have come up with an idea.
Recession-hit New York could raise an extra $50 million a year by collecting income taxes from people who work for hedge funds in the state but live elsewhere, according to a legislative plan to raise revenue.
To add insult to injury:
A spokesman for Democratic Assembly Speaker Sheldon Silver said by telephone on Monday that it means hedge fund managers would be treated the same way as other commuters.