If Congress Won't Tax Carried Interest as Income…

. . . maybe New York and neighboring states should pick up the "lost" revenue. By collecting the equivalent of what hedgies save by having the carried-interest portion of their compensation taxed as capital gain, New York State figures it might collect $3.7 billion a year. For New York's ploy to work, neighboring states would have to follow suit. It's suggested that The Merrill Anderson' Company's home state, Connecticut, could collect a half billion or so annually. See New York Challenges a Tax Privilege of the Rich.