Do you believe carried-interest is a loophole?
No one is going to say this out loud to colleagues or politicians, but do you guys personally believe that the tax treatment of carried interest is fair to the other 99+% of taxpayers?
I get the "partners have a vested capital interested as well" argument, but I have a hard time arguing to outsiders is why they should receive carried interest on anything above their own capital contribution to the firm, as that is their personal interest in the fund.
If you put $20m of your own money into something and someone else gives you $80 million to manage, should you really be able to get carried interest tax treatment on the entire $100 million? The maximum that you personally stand to lose is $20 million, so isn't that your "interest" in the fund. You're getting paid a management fee as well; why should you get "carried interest" on anything above that $20 million?
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