Compromise Provision to Narrow “Carried Interest” Tax Loophole Should Not Be Weakened Further

Compromise Provision to Narrow "Carried Interest" Tax Loophole Should Not Be Weakened Further

By Chuck Marr and Gillian Brunet

"A provision in the jobs bill that the House passed on May 28 would partially close a tax loophole that allows investment fund managers to pay taxes on a large part of their income — their "carried interest" — at the 15 percent capital gains tax rate rather than at normal income tax rates of up to 35 percent.

"Unfortunately, the version of this provision that Senate Democratic leaders unveiled on June 8 is weaker than the House-passed version, and lobbying efforts continue for the Senate to weaken it further.

"The Senate should resist these efforts.

"In addition, the House-Senate negotiators who will iron out the final version of the jobs bill should move this provision back in the direction of the House-passed provision."

View the full report:
http://www.cbpp.org/cms/index.cfm?fa=view&id=3209
http://www.cbpp.org/files/6-9-10tax.pdf 9pp.