The word "privilege" is starting to cause a visceral reaction in me. Class warfare is alive and well, legalizing theft is an increasingly popular idea, and criminalizing expertise is called "progressive."
The state of Illinois is considering a whopping 20 percent "privilege tax" on financial advice:
The Illinois bill would put a 20% levy on fees earned by investment advisers. It passed the state Senate in a 32-24 vote Tuesday, and backers are hoping to get it through the House before the legislative session ends May 31.
The new tax is pitched as a way to squeeze more revenue -- as much as $1.7 billion a year -- from hedge funds and private-equity firms, which purportedly get off easy on their federal taxes because of the “carried interest loophole.” But under the current version of the bill, Illinois would keep collecting the privilege tax even if Congress were to cease taxing carried interest at the lower capital-gains rate.
Thank goodness for the Law of Unintended Consequences.