Ben Stein is generally seen as a fiscally conservative Republican (something about writing speeches for Richard Nixon ...), but even he thinks the insanely favorable tax treatment that hedge funds receive is outrageous. Referring to the extraordinary compensation many hedge fund managers receive:

Somehow, by some alchemy of brilliant tax lawyers, these people are paying long-term capital gains rates of 15 percent on their compensation (even though much of their pay is tied to trades with holding periods that last seconds). Doctors and lawyers and writers and actors pay about two times that amount.

That's it. End of discussion. Why should private equity and hedge fund managers receive such special treatment when they are making such an enormous amount of money. In the words of Johnnie Cochran, "It does not make sense!"

Stein then makes another brilliant proposal:

Why don't we just have a tax holiday for people who are fighting in Iraq and Afghanistan for five years after they get back? ...

Let's keep it real: Congress can take notice of a mammoth inequity in taxation during wartime and make the tax on private equity and hedge funds approximate the treatment of other highly paid people - or it can continue down the road to the Bastille.

Brilliant as usual, Mr. Stein. Why isn't this guy running for office? Oh wait, he actually makes sense.

More from Ben Stein:
Ben Stein blasts Supreme Court for failing to protect shareholders
Ben Stein outlines his perfect portfolio and gives more sage advice
Ben Stein: Sit back, relax, and enjoy the dips

This was an odd morning. I am not sure if the weird factor was that a senior care company was finally being acquired or that there was no real premium to the deal. The Carlyle Group is acquiring Manor Care (NYSE:HCR) in a $4.9 billion acquisition, or $6.3 billion if you include the debt assumption.

Shareholders will receive $67 per share, assuming shareholders approve it. "No-Premium" deals are harder for new shareholders to stomach, but older shareholders will be able to cash out since the stock jumped roughly 20% back in April after word of a deal had come to light when the company announced it was exploring strategic alternatives.

Manor Care employs almost 60,000 people and operates more than 500 facilities in nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and hospice and home care agencies. If you consider the looming retirement of the baby boomers, all of these facilities offer a considerable value.

It sure seems like the price of poker, or bingo in this case, just went up. You expect more consolidation in a cottage industry that is about to become a secular group.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

A recent piece in The New York Times discussed the changing face of activist investing in Europe. While activist investing in the United States conjures up images of moguls like Carl Icahn and Dan Loeb, it seems that smaller investors are banding together to take on some pretty big companies in Europe.

According to Roger Lawson, communications director for the UK Shareholders' Association, "If there is a problem with the company, shareholders will say, 'Let's do something about it ourselves and don't trust the directors to do so.'"

It's pretty good logic. Remember: If you see a problem at a public company, it's there because the board didn't do anything about it. In most cases, if the board were effective, the problem wouldn't be sitting there for all to see. Often, criticism is leveled at executives and the board of directors tends to get a pass. But if there's a problem with the CEO, that all goes back to the board.

It's exciting to see a global trend toward more activist investing. And every underperforming company represents a possible opportunity for an investor with deep pockets willing to go in and agitate for change.

Kohlberg Kravis Roberts & Co.'s $25.6 billion buyout of First Data Corp. (NYSE:FDC) won't hold the spot of the second-largest buyout for long.

Tthe top-ranked $45 billon TXU deal, which also includes KKR, will get eclipsed as well.

There's bound to be another mega LBO sooner rather than later. KKR, The Blackstone Group and Texas Pacific Group all have billions of dollars burning holes in their pockets.

What people seem to be forget is that these firms don't want their investments to remain private forever. Odds are good that investors will get another shot at buying shares of First Data in a few years. Maybe then being public will be back in style.

First Data should thank its lucky stars that it's being acquired by KKR.

Growth at the credit-card processing company has been slowing since it separate its Western Union payment processing business and has struggled to find a chief executive to succeed Henry C. "Ric" Duques, the Wall Street Journal said.

Duques who returned in November 2005 after his successor Charles Foote announced his retirement for "personal reasons." At the time, Duques agreed to stay for about two years to help the company find a new successor.

Investors have sat on the sidelines while First Data searched for new leadership. Its stock tanked more than 40 percent over the past year even though most Wall Street analysts rate it either a buy or a strong buy.

Analysts had said First Data would make an atractive buyout candidate for private equity. My colleague Georges Yared makes a persuasive case that the company's prospects are good.

In addition, First Data stands to profit handsomely from the private equity boon. All of those credit card purchases by investment bankers of first-class airplane tickets, suites at fancy hotels and expensive bottles of wine have to be processed somewhere, no?

I suspect Bruce Wasserstein has some skillful handlers. He currently runs the investment bank Lazard Ltd. (NYSE:LAZ) and is no doubt doing tons of deals.

In the meantime, he's got extracurricular activities. One is a $25 million gift to his alma matter, Harvard Law School. It will be used to build the Wasserstein Hall and the architect is Robert A.M. Stern (you can see it on the right).

It will be completed in 2011.

Oh, Wasserstein also has his own investment firm. It's called Wasserstein & Co., LP. This week, the firm hired Credit Suisse Group (NYSE:CS) to look at "strategic alternatives" for ALM, which is a top legal publisher. Some of its properties include The American Lawyer, Corporate Counsel and The National Law Journal. There is also the Law.com portal (which, by the way, is a great resource).