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<ref name="miller">[https://www.google.come/ E. Miller, ''The Sun'', (New York: Academic Press, 2005), 23-5.]</ref>
<ref name="smith">R. Smith, "Size of the Moon", ''Scientific American'', 46 (April 1978): 44-6.</ref>
http://www.streetofwalls.com/articles/private-equity/learn-the-basics/how-private-equity-works/
http://www.investopedia.com/articles/investing/102515/carried-interest-loophole-americas-tax-code.asp
https://www.cbo.gov/sites/default/files/110th-congress-2007-2008/reports/09-06-carriedinterest_testimony.pdf
http://poseidon01.ssrn.com/delivery.php?ID=060100116086005026119081093099074076000050041076022024096099094109098086118078071127048021127015040030058020018027010092124099126094082050028021026006001124025056007031006068110014097117083118121111076105007025111126100022121109027085075095022026&EXT=pdf
http://poseidon01.ssrn.com/delivery.php?ID=827006111117101076120127100094005111103049014093061025126075006126024094004067006067098030052002015017013092031071074023126005052019045093022024030088100111030086041039086122093005127112071088088083006093097112086026017003096006001105007085116120006&EXT=pdf
no edit summary
Those who argue against treating investment funds' profits as capital gains have two primary points:
*The first of which is that carried interest is only taxed when it is realized. Through this tax deferral, the carried interest can benefit from the time value of money. Thus, the general partners at the private investment funds then have what some perceive to be unfair tax advantage. The limited partners, if they are taxable, are then at a comparative tax disadvantage because they cannot receive a deduction for the carried interest when it is granted. If they are not taxable, as many limited partners aren't i.e. pension funds, then the government loses tax revenue. The tax deferral argument is particularly more relevant when it comes to funds that are not persistent in their performance. When a fund is consistent in its increasing returns, as venture capital funds tend to be, the deferred taxes grow greater over time. When a fund has inconsistent returns, the smaller deferred taxes from bad years offset the higher deferred taxes from successful years, generating a benefit for a lack of persistence in performance <ref name = "fleischer" />.
*The second and more emphasized point is that carried interest is subject to the capital gains tax rate mentioned before. Opponents of such treatment consider carried interest to be a performance-based compensation, much like a bonus, and believe it should be taxed at the ordinary income rate. In their argument, the opponents frequently compare general partners' roles to those of corporate executives and mutual fund managers who are subject to the ordinary income rate<ref name = "cbo" />.
==References==
<references>
<ref name="taxpolicycenter">[http://www.taxpolicycenter.org/briefing-book/what-carried-interest-and-how-should-it-be-taxed] 'What is carried interest, and how should it be taxed?', ''Tax Policy Center'',(Washington D.C.), </ref>
<ref name = "cbo">[https://www.cbo.gov/budget-options/2013/44804] 'Tax Carried Interest as Ordinary Income', ''Congressional Budget Office'', (Washington D.C.: November 2013) </ref>
http://www.investopedia.com/ask/answers/121614/what-difference-between-hedge-fund-and-private-equity-fund.asp
<ref name = "gilson">[http://poseidon01.ssrn.com/delivery.php?ID=348094069068097094119089120112004024054087061054024018026092001024067007096126013011014037019082006125120095096037013030043064065100012004082097077088071121070043086031006071066117117091087085111069104075106102002127095082006102088108080070004&EXT=pdf] R. Gilson, 'Engineering a Venture Capital Market: Lessons from the American Experience', ''Standford Law School'', (Stanford: November 2002) </ref>
<ref name = "pearl">[http://thehill.com/blogs/congress-blog/economy-budget/257083-what-the-carried-interest-tax-loophole-reveals-about-our] M. Pearl, 'What the carried interest tax loophole reveals about our corrupt political system', ''The Hill'', (Washington D.C.: October, 2015) </ref>
[http://www.ntanet.org/NTJ/61/3/ntj-v61n03p445-60-taxation-carried-interest-understanding.pdf| 1]The Taxation of Carried Interest: Understanding the Issues
[http://poseidon01.ssrn.com/delivery.php?ID=827006111117101076120127100094005111103049014093061025126075006126024094004067006067098030052002015017013092031071074023126005052019045093022024030088100111030086041039086122093005127112071088088083006093097112086026017003096006001105007085116120006&EXT=pdf| 2]Hedge Fund Characteristics and Performance Persistence
[http://poseidon01.ssrn.com/delivery.php?ID=060100116086005026119081093099074076000050041076022024096099094109098086118078071127048021127015040030058020018027010092124099126094082050028021026006001124025056007031006068110014097117083118121111076105007025111126100022121109027085075095022026&EXT=pdf| 3]Has Persistence Persisted in Private Equity? Evidence From Buyout and Venture Capital Funds
[http://www.investopedia.com/articles/investing/102515/carried-interest-loophole-americas-tax-code.asp| 4] Carried Interest: A Loophole in America’s Tax Code
[https://www.cbo.gov/sites/default/files/110th-congress-2007-2008/reports/09-06 carriedinterest_testimony.pdf| 5] The Taxation of Carried Interest
[http://www.investopedia.com/ask/answers/121614/what-difference-between-hedge-fund-and-private-equity-fund.asp| 6] What is the difference between a hedge fund and a private equity fund?
