New York Sun- A majority of the City Council is backing a tax-the-rich plan that would require hedge fund and private equity fund partners to pay a city tax on income generated by investments, making it more likely to gain traction in Albany.

Assemblyman Micah Kellner, who represents the Upper East Side, recently introduced a bill that would change the city’s tax law so it would apply to hedge fund and private equity managers.

Twenty-six of the council’s 51 members signed a letter in support of the tax proposal, which is being touted as a way to raise more than $200 million a year. As the council and Mayor Bloomberg near a July 1 budget deadline, members are searching for new ways to generate revenue for the city to protect favored programs and classrooms from anticipated budget cuts.

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Tags: hype, industry-executive, proceeds, spike, venture-capital-investments