Submitted by James Quigley, Jul 17, 2007 12:31

Ms. Gelinas,

You wrote: Because that fixed share of the money comes with a guarantee, at least in the short term, it immediately becomes the manager's money, in reality if not on paper.

Although I abhor progessive taxes and would like a flat tax much better, I see one flaw in your logic: If 20% goes to the manager immediately, then why shouldn't that be taxed "immediately" as ordinary income?

James

Note: Comments are screened, and in some cases edited, before posting. We reserve the right to reject anything we find objectionable.