What's obscene is the mindset that created that rule.
So Adam Smith is like Marx now? :-p
Of course if the tax break is available to him, he's going to take it.
The big problem is the mindset that created the tax break in the first place, not him taking advantage of it. It's another symptom of the broken tax system.
Of course, I have little doubt that he and/or his firm has lobbied to keep the rule in place. This gift to him and others like him didn't appear out of thin air.
On the destruction of wealth if people pay their fair share of taxes canard:
http://ctj.org/pdf/c...dinterest2010.pdf (2 page .pdf):
DonÂt We Want to Encourage Venture Capital?
The venture capital industry is lobbying for a carve-out from the carried interest provision. They point out they foster small business, encourage innovation, and create jobs, so we donÂt want this type of investment to dry up. ItÂs a tempting argument, but try to see through the smoke. The change affects only the managers of venture capital funds. It doesnÂt change how the investors are taxed. The managers will take home less cash, but they still have plenty of incentive to work hard and make the fund successfulÂremember that 20 percent interest they get, plus the 2 percent management fee. The venture capitalists provide important services, but no more important than the teachers who educate our kids to create the next round of innovations. Teachers salaries shouldnÂt be taxed at higher rates than venture capitalists compensation.
HTH.
Cheers,
Scott.
