Nobody Should Be Making $1 Billion a Year -- Nobody

The Times ran a story this week about the 2009 pay of top hedge fund managers, who averaged a $1 billion paycheck each last year.

There is no other word for this except "disgusting."

As is typical in these stories, the Times detailed how these men (all men) managed to take home $1 billion or more. They also noted that several had "lost" money in 2008, though it was unclear whether they "lost" income or that their funds (of which they own a very small part) lost money, while they took home "only" $100 million or whatever in pay.

The Times mentioned that Congress wants to raise the tax rate on these earnings, which, incredibly, are taxed as capital gains, the lowest possible rate, rather than as ordinary income. The private equity and venture capital trade groups are fighting this proposal with all they've got.

What the Times didn't explore was whether these folks expect to pay any taxes at all on this income. Why do I think that their paychecks go directly to bank accounts in tax havens like the Cayman Islands, where they maintain "legal residence"?

I'm dead serious about my outrage here. Our society and values are seriously out of whack if we condone or applaud such outrageous pay levels. I don't have a problem with people striving to make that much, but I believe that we should tax away most of it. It should be really, really, really hard to make that much money.

[caption id="" align="aligncenter" width="500" caption="This is not a picture of a hedge fund manager sitting at his desk."][/caption]