Carry and Future Tax
With a future Labour government in the UK and generally any left-leaning government in Europe and potentially in the US as they have indicated, it seems decently plausible that the loophole providing low tax rates on carried interest compared to e.g. labour income will be abolished.
No one seems to be talking about this even though it seems this will have a far greater impact on future comp and career comparisons to IB than the current debate on IB vs PE following modest 10k rises to IB salary. Why is this the case, will a future loophole be created, what am I missing?
How does carry currently get taxed? 20% no matter where you live?
Based on your country’s capital gains rate
Assuming US, would it be taxed at a flat 20% in all 50 states? Why do funds bother moving to FL?
Carry is taxed at the same rate as capital gains tax in the USA.
20%
Yeah but in the UK and I imagine other European countries, it is not...
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