Hedge fund king John Paulson earns more per hour than most Americans in a lifetime—and he pays a lower tax rate
If your job paid $50,000 a year and you stayed at it for 47 years, your tally for a lifetime of work would be $2.4 million. Not bad — but hedge fund hustler John Paulson pulled down that much last year.
Most of us would consider an annual income of $2.4 million to be a windfall, but it didn’t take Paulson a full 12 months of work to pocket his windfall — or one month, a week, or even a day.That’s how much he made an hour. Yes, Paulson could’ve worked one single hour in 2010 and hauled off a paycheck equal to what a typical household gets for a lifetime of work.
Jilani then says:
Hightower goes on to note that not only does Paulson earn such wild compensation, but that he actually pays a lower effective income tax rate — 15 percent — than the average American, whose effective rate in 2007 was 20.4 percent.
Jilani’s point — close that hedge-fund tax loophole, the one that taxes capital gains at 15%. He even has agreat graph from MoveOn.org to illustrate the point. (Read carefully; white-on-light-blue was maybe not the best color choice for this excellent data.)
By the way, hedge-king John Paulson is the guy we clocked in 2009 as earning $2.3 billion. He’s also this guy, the one who got Goldman Sachs to create worthless derivatives packages so he could bet against them.
You can buy a lot of Congressional thank-you for what he earns in a day. And a lot of reluctance-to-prosecute with the change.