How’d you like to pay half? Carried Interest loophole allows private investment’s general partners to pay tax at the long-term capital gains rate of 20%, rather than 39% (or 43.4%), the rate for salary and income.
General partners and investment bankers pay tax at ordinary rates on their wages, salaries, and bonuses. They are not allowed to treat their income as capital gains. But hedge fund managers are, under the Carried Interest loophole. Tax reform: Good time to fix this…….
Trump/Republican tax reform does not mention the Carried Interest loophole.
Trump/Republican Secretary of the Treasury, Steven Mnuchin, is a former hedge fund manager.
SOURCE:
http://www.truth-out.org/opinion/item/42172-the-very-rich-will-benefit-trump-s-proposed-tax-plan-makes-it-clear