FREE MONEY FOR THE GREENWICH 7 FIGURE EARNERS:

Hedging on Race (EDWARD BLUM, September 21, 2007, NY Sun)

Just when you think there can't be any innovative ways left to play the race card, someone pulls an ace from their sleeve. A recently-formed consortium of investment professionals who are minorities and women is now claiming that if Congress increases the taxes on hedge-fund operators, which it is presently considering, it will adversely affect — yep, you got it — women and minorities.

In 40 years, civil rights goals have gone from integrating lunch counters in Greensboro, N.C., to sheltering hedge-fund operators from tax increases in Greenwich, Conn. [...]

This race-gender tactic is repellent. Reasonable people can have a reasonable debate about whether Congress should raise taxes on "carried interest," a slice of the profits that go to the managers of these pooled funds. Persuasive arguments have been offered by those who want to maintain the current system and those who don't. But it is simply ludicrous — pathetic, really — to claim that women- and minority-owned investment firms will suffer more than their similarly-situated counterparts if taxes are raised.

All small firms may suffer, or not, if saddled with higher taxes, regardless of the race or gender of its principals. This kind of "disparate impact" rationale has been fought tooth and nail by business interests in their employment practices for over three decades.

Some observers speculate there are two reasons behind the formation of the Access to Capital Coalition. The first is to peel away black and Hispanic members of Congress who have been vocal in supporting legislation to end the lower rate. Specifically targeted is the chairman of the House Ways and Means Committee, Charles Rangel, an African-American who sponsored legislation, along with 22 other Democrats, to raise this tax.

The other reason is to give cover to Democrats in the Senate like Charles Schumer and Christopher Dodd whose constituents and donors greatly benefit from the status quo.

Whatever the reasons, it is sad that this race ploy is being embraced by the very investment firms that should know better — the same ones, in fact, that have had it played against them for years.