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REGULATION/LEGISLATION

Joint Committee on Taxation: Ending carried interest will raise $15.6 billion

Ending the carried interest tax rate paid by private equity and other private fund managers will raise an estimated $15.6 billion in tax revenue over 10 years, said the congressional Joint Committee on Taxation.

The estimate was prepared at the request of House Ways and Means Committee Ranking Member Sander Levin, D-Mich., and Sen. Tammy Baldwin, D-Wis., who are sponsoring a bill to end the carried interest tax rate, and subject investment partnerships to ordinary income tax rates.

“This score further highlights just how much inequality exists in our nation’s tax code,” Mr. Levin said in a statement Thursday. “Thankfully, closing the carried interest loophole has gathered more bipartisan support in recent months, joining our push — through this legislation — so all Americans can be treated fairly under the law.”

The JCT’s revenue estimate for the legislation, H.R. 2889, shows additional tax revenue of $1.4 billion in fiscal 2016, and $15.6 billion over the next 10 years.