New York Gov. Resurrects Hedge Fund Tax Plan

``But while Paterson last month backed off of a plan to tax carried interest—performance fee income—as ordinary income rather than capital gains, in effect doubling the taxes out-of-state hedge fund managers who work in New York would pay on such income, he included the measure in his version of the compromise.... The State Senate, however, has ignored the governor, who is not running for reelection. Senators say they plan to negotiate their own agreement, rather than accept the governor’s plan.''