Friday, March 12, 2010

Close the Carried Interest Tax Loophole Now

At a congressional hearing on the subject, Warren Buffett said, “If you believe in taxing people who earn income on their occupation, I think you should tax people on carried interest.”

A tax loophole that saves private equity and hedge fund managers billions of dollars every year has existed since 1954. Yes, that's right. Taxpayers have been subsidizing these multi-millionaires for 56 years. For three years in a row, the House of Representatives has passed a bill to close this loophole. The Senate has failed to pass the bill, so the loophole still exists. It's a joke. Who in the Senate is going to be a leader and stand for what's right?

James Surowiecki has a brilliant and brief analysis in the New Yorker.

US PIRG has an excellent statement on the need to close the loophole.