[Editor's note: 1031Gateway supports the efforts of groups like www.SaveThe1031.org, which is exposing the devastation this tax reform proposal would unleash on our economy and mobilizing Americans to make their opposition known to Congress in order to stop this bill. Please visit www.SaveThe1031.org and fill out their form to directly send individual letters to your representative and senators in Congress, urging them to fight for the 1031 exchange.]
“'The hedge-fund guys are getting away with murder,' Trump told CBS News in 2015. 'They’re paying nothing, and it’s ridiculous.
"The GOP tax plan, on the other hand, would offer hedge-fund managers more tax relief. Under that proposal, rather than paying the reduced capital-gains tax on their carried interest, they would not pay any taxes on their income from foreign clients. Instead, they could claim all of their income from foreign customers as fees, making their services tax-free exports, Rosenthal said."
"Barclay Hedge, a private research firm in Fairfield, Iowa, estimates that foreigners have roughly $1 trillion invested in U.S. hedge funds. That is about a third of the money managed by the sector."
"He pointed out that under the plan, 'you can be an individual making hundreds of millions of dollars by exporting your services,' without paying U.S. taxes on any of that income, if all of your clients live abroad."
"Reuven Avi-Yonah, a legal scholar at the University of Michigan, points out that hedge-fund managers send their children to American schools, take American trains to work every day and rely on U.S. courts to enforce their contracts. In turn, he said, they should pay taxes to fund those public services."