The managers of hedge funds, private equity funds and various other investment funds are different from you and me. Their pay is taxed at the capital gains tax rate rather than the tax rate applied to wage income. That can add up to a fairly significant sum as the ca[ital gains tax rate is 20%, while the tax on ordinary income for people in the high brackets is almost double that, at 39.6%. The difference is because their pay is supposedly commissions.
Did someone mention inequality?
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