In 2015 the Internal Revenue Service released a memo indicating that the basket option was an improper maneuver to convert short term capital gains into long term gains. To date, there has been no public announcement of any Federal regulatory action taken against Renaissance or Mercer over the $6 billion tax avoidance scheme.


Hedge funds already receive a perverse form of taxation known as "carried interest" that allows their winnings to be taxed at rates lower than those paid by some plumbers and nurses. This cozy tax scheme allows managers of hedge funds and private equity funds to have much of their income taxed as long term capital gains rather than the almost double tax rate that would be applied if it were treated as wage income.

It's time for the American public to find out just what happened to the $6.8 billion tax problem that Robert Mercer's Renaissance Technologies had with the IRS before Trump's election.

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