Difference between revisions of "Carried Interest"
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Carried interest is a money manager’s share of the profits made by investing clients’ money — typically, around 20 percent. If those profits were made on investments held for more than a year, they’d qualify for the long-term capital gains tax rate of 20 percent, instead of the earned income tax rate of nearly 40 percent. This would apply to both the clients’ share of the profits, and the money manager’s “carried interest” share. Some, like the Private Equity Growth Capital Council, argue that it’s an important driver of economic growth. The"carried interest" loophole, allows billionaire hedge fund managers (and some others) to pay taxes on interest at capital gains rates. This windfall amounts to at least $10-billion/year. [http://www.huffingtonpost.com/al-lewis/sanders-repeaing-the-corruption-tax_b_8161684.html Huffington Post] | Carried interest is a money manager’s share of the profits made by investing clients’ money — typically, around 20 percent. If those profits were made on investments held for more than a year, they’d qualify for the long-term capital gains tax rate of 20 percent, instead of the earned income tax rate of nearly 40 percent. This would apply to both the clients’ share of the profits, and the money manager’s “carried interest” share. Some, like the Private Equity Growth Capital Council, argue that it’s an important driver of economic growth. The"carried interest" loophole, allows billionaire hedge fund managers (and some others) to pay taxes on interest at capital gains rates. This windfall amounts to at least $10-billion/year. [http://www.huffingtonpost.com/al-lewis/sanders-repeaing-the-corruption-tax_b_8161684.html Huffington Post] | ||
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| + | "There is one thing that Bernie Sanders, Hillary Clinton, Jeb Bush and Donald Trump all agree on — their professed dislike of the “carried interest” loophole." -[http://www.pbs.org/newshour/making-sense/carried-interest-simply-tax-break-ultra-rich/ PBS] | ||
==Bernie Sanders== | ==Bernie Sanders== | ||
Revision as of 17:34, 12 February 2016
Carried interest is a money manager’s share of the profits made by investing clients’ money — typically, around 20 percent. If those profits were made on investments held for more than a year, they’d qualify for the long-term capital gains tax rate of 20 percent, instead of the earned income tax rate of nearly 40 percent. This would apply to both the clients’ share of the profits, and the money manager’s “carried interest” share. Some, like the Private Equity Growth Capital Council, argue that it’s an important driver of economic growth. The"carried interest" loophole, allows billionaire hedge fund managers (and some others) to pay taxes on interest at capital gains rates. This windfall amounts to at least $10-billion/year. Huffington Post
"There is one thing that Bernie Sanders, Hillary Clinton, Jeb Bush and Donald Trump all agree on — their professed dislike of the “carried interest” loophole." -PBS
Bernie Sanders
Bernie Sanders says he would end the Carried Interest loophole.
Hilary Clinton
Hilary Clinton says she would end the Carried Interest loophole.
Donald Trump
Donald Trump says he would end the Carried Interest loophole
Jeb Bush
Jeb Bush says he would end the Carried Interest loophole.
