Bloomberg On Hedge Fund Tax: ‘Best Thing That Ever Happened to Connecticut’

As the Legislature prepares to vote on its amalgam of revenue raisers aimed at closing the budget, there is at least one person quite upset with the new taxes aimed at the wealthy.

Asked about the plan to tax income on hedge fund partners who live in New York but work outside the state, Mayor Bloomberg, speaking to reporters after a volunteerism event, was blunt:

“I think it’s the best thing that ever happened to Connecticut. I can’t imagine why every hedge fund won’t pick up tomorrow and leave.”

The mayor went on to criticize a measure backed by the Legislature that would effectively raise the income tax some for those who live in the city and make more than $500,000 a year, and legislation that would decrease the tax deduction for those who make at least $10 million a year (he called it “as crazy as the hedge fund thing”).

And, by Bloomberg’s telling, Governor Paterson is in agreement:

“The governor said to me this morning when I talked to him, he said he was not in favor of this, and the Legislature had insisted on raising taxes on the wealthy by cutting back on STAR and by reducing the deduction for charitable deductions, which is as crazy as the hedge fund thing. We need the private sector to be more generous to carry us through this difficult period.

All of this stuff is going in totally the wrong direction.”

Needless to say, the mayor would be affected personally by this legislation as well. 

Bloomberg On Hedge Fund Tax: ‘Best Thing That Ever Happened to Connecticut’