Monday, July 14, 2008

Hedge Funds Give More to Obama

According to a Reuters report, hedge fund managers have thrown more than twice as much money at Obama's campaign as they have at McCain's. From the report:

New figures show the Illinois senator and presumptive Democratic presidential nominee has drawn $822,375 in campaign contributions from employees of hedge funds, compared to $348,300 for his Republican rival, Arizona Sen. John McCain.

The figures, compiled for Reuters by the Center for Responsive Politics, a nonpartisan campaign finance research group, reflect mounting concern over the rising cost of health care and other domestic issues where several hedge fund managers said Obama had an edge over McCain.

The New York Times business section ran a similar story on April, 22 and gives a list of Obama's wealthiest donors.

Democrats have not been altogether difficult for hedge fund managers to deal with. New York Senator Charles Schumer last year defended the 15% tax rate that a number of hedge fund managers pay on income from fees they charge for managing other people's money. As was widely reported in 2007, Schumer argued that to charge higher rates would be to discourage "risk-taking", as though entrepreneurs were the timid sort and need to pay less in taxes than do construction workers and secretaries in order for us to keep them out there taking risks for the rest of us.

It is a good thing then that small business owners are hardier sorts because neither Party is working very hard to give them 15% tax rates on income.

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