Biden wants to close carried interest loophole for hedge fund and private equity executives
From the NYT: https://www.nytimes.com/2024/03/12/business/dealb…
Biden called for raising $5 trillion in new taxes on companies and the rich, including:
- Raising the corporate tax rate to 28 percent from 21 percent, where it was set in 2017;
- Increasing the corporate minimum tax to 21 percent, up from the 15 percent set in 2022;
- Quadrupling a levy on corporate stock buybacks to 4 percent and eliminating a tax break on purchases of corporate jets;
- Lifting the capital-gains rate for those who earn more than $400,000 to 39.6 percent, while closing the so-called carried interest loophole for hedge fund and private equity executives;
- And imposing a 25 percent “billionaire tax” on those whose wealth exceeds $100 million. (Valuing people’s fortunes will be tricky and the Treasury Department hasn’t specified how it would do so.)
Very worrying. This would be a disaster for our industry, for the US economy and for the sustainability of my Hampton's home mortgage.
I was talking to my boss about it this morning... seems general consensus among seniors is (if it happens) it'll suck and they'll vote as much as they can against it, but there really isn't a good argument against it other than self-interest.
Always lol’d at these commies for calling it a “loophole.” Capital is risked in investments, it appreciates, is returned, and the gains are taxed. Like some kind of… capital gain.
Yes and no. As much as it sucks, we do not need to pretend that carry paid to investment professional is solely related to capital investments and not their work
Lmao ok then where does it get paid out from? Can’t wait to hear your mental gymnastics…. Room temp IQ take and I like it cold
It does not really matter what Biden wants to. A bill would have to pass in the house and the senate before it gets to him. These proposals are not going to be passed by the house and probably not even the senate
If someone works really hard to read the 10Ks of a publicly traded company, talk to management, and maybe even take on a little bit of debt to buy up some of their stock, should that person pay ordinary income rates on positions held longer than a year in the stock market?
This is why tax professionals don’t refer to loopholes. They call them “provisions of the Internal Revenue Code.”
There is no real reason for these loopholes to exist other than self interest. It wouldn’t be ‘disastrous’ to everyone, just the people who are making money off it directly
Same thing is being talked about in the UK. The opposition argument is that a bunch of PE firms will simply move to EU countries if it happens which would put a huge dent in the overall professional services sector and London as a financial services hub as a whole.
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