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Looming Tax Bill to Test Dem Loyalties

Bill to help middle class hurts their hedge-fund backers

By Jonas Oransky, Newser Staff

Posted Nov 7, 2007 8:04 PM CST

(Newser) – A bill to give tax breaks to middle- and low-income people by closing loopholes that keep equity executives’ tax rates low is set for a vote this week in Congress, the Washington Post reports, forcing Democrats to choose between standing up for the common man and protecting the hedge-fund managers who keep campaign coffers full.

Senate Majority Leader Harry Reid said last month the hike for execs were effectively tabled for the year; now that it’s back, it’s expected to pass in the House—and spark a Senate showdown. One top hedge-funder who made $900 million last year would have paid $36 million more in taxes at the normal rate; he's a key Democratic contributor.

House Financial Services Committee Chairman Rep. Barney Frank, D-Mass., says "hedge funds are to New York what tobacco has been to North Carolina. People don't like to tax their constituents." (AP Photo/Susan... (Associated Press)

In this photo provided by CBS, Rep. Rahm Emanuel, D-Ill., appears on CBS's "Face the Nation" in Washington, Sunday, Aug. 5, 2007. (AP Photo/CBS Face the Nation, Karin Cooper) (Associated Press)

Sen. Chuck Schumer, D-NY, opposes legislation to raises taxes on hedge funds. (AP Photo/Dennis Cook) (Associated Press)

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House Won't Pass 2-Month Payroll Tax Cut: Boehner

Will instead call for quick talks on one-year extension

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President puts pressure on Congress to act

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$1T in cuts now with more later—and a 'trigger' to ensure a second deal

Obama, GOP Hold Hushed Tax-Cut Talks

President calls for speedy renewal of jobless benefits

Tax Cut Showdown: Dems' Two Options

Must win centrists as Bush cuts expire

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OTHER STORIES ON OUR RADAR

Congress • hedge fund • equity trading • tax cuts • tax breaks

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

House Won't Pass 2-Month Payroll Tax Cut: Boehner

Will instead call for quick talks on one-year extension

Obama Pushes Payroll Tax Cut Amid GOP Split

President puts pressure on Congress to act

So What's in the Debt Deal?

$1T in cuts now with more later—and a 'trigger' to ensure a second deal

Obama, GOP Hold Hushed Tax-Cut Talks

President calls for speedy renewal of jobless benefits

Tax Cut Showdown: Dems' Two Options

Must win centrists as Bush cuts expire

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Newser By Users

Community

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What is Newser?