Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Innovation Investing Conference
    • 2022 Defined Contribution East Conference
    • 2022 ESG Investing Conference
    • 2022 DC Investment Lineup Conference
    • 2022 Alternatives Investing Conference
Breadcrumb
  1. Home
  2. Legislation
March 14, 2019 01:00 AM

Congress revives carried interest debate

Hazel Bradford
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg
    Senator Tammy Baldwin, a Democrat from Wisconsin, introduced a bill to end the carried interest tax treatment for investment fund managers.

    Another bill to end the carried interest tax treatment for investment fund managers was introduced in Congress on Wednesday by two Democrats: Sen. Tammy Baldwin of Wisconsin and Rep. Bill Pascrell of New Jersey.

    Carried interest is the portion of an investment fund's returns eligible for a capital gains tax rate of 23.8% instead of the ordinary income tax rate up to 37%. The proposed legislation would tax carried-interest income at ordinary-income rates. According to the non-partisan Congressional Budget Office, closing the carried interest loophole would raise $14 billion in revenue over 10 years.

    President Donald Trump campaigned on the promise to do away with the loophole in 2016. During 2017's tax reform debate, efforts to repeal it were blocked, with the only change being that a fund's general partners must hold the relevant investments for three years, instead of one, starting in 2018.

    "It's simply unfair for our workers to pay a higher tax rate than a millionaire on Wall Street, so President Trump needs to stand by his word, support our legislation and finally close the carried interest tax loophole for Wall Street," Ms. Baldwin said in a statement.

    Several Democratic lawmakers are co-sponsoring the bill, which is endorsed by progressive groups, labor unions and the AFL-CIO. Damon Silvers, AFL-CIO director of policy and special counsel, in the same statement called it "the single most outrageous loophole in the tax code. It forces the American taxpayer to subsidize the pay of Wall Street titans that conduct job-killing leveraged buyouts and charge pension investors exorbitant fees."

    Drew Maloney, president and CEO of the American Investment Council, the private-equity industry advocacy group, said in a separate statement that the tax increase, which he called discriminatory, "has been rejected repeatedly by economists, tax experts and bipartisan congresses."

    "It would unnecessarily harm entrepreneurs, business owners, endowments, pension funds and American workers in every state and congressional district in the country," he said.

    Mr. Maloney noted that in Wisconsin alone, private equity supports the jobs of 50,000 of Ms. Baldwin's constituents and has invested more than $47 billion in Wisconsin businesses from 2012-2017, while the $101.1 billion Wisconsin Retirement System, Madison, "was buoyed by private equity investment, which returned 15.5 % in 2017."

    Ms. Baldwin noted that during consideration of similar legislation in 2015, the current chairman of the Senate Finance Committee, Charles Grassley of Iowa, said the proposal "is not about raising taxes on capital income. It is not an attack on the investor class. It is about the definition of capital income versus labor income."

    Related Articles
    House panel hears ideas for solving 'urgent' multiemployer crisis
    President Trump repeats call to trim federal retirement benefits, switch to DC …
    SEC's Reg BI proposal draws criticism in House hearing
    Senate proposal would give SEC more tools to seek restitution for investors
    Mnuchin says no plan to change carried interest tax treatment
    Recommended for You
    kansas-welcome-highway-sign_i.jpg
    Kansas Public Employees to get $1.1 billion in state contributions
    Congress Aerial-main_i.jpg
    Bills introduced to boost small-business retirement plan offerings
    cftc_logo_2_1550-main.jpg
    Bipartisan bill introduced to give CFTC additional crypto oversight
    Alternatives: Investing Across the Spectrum
    Sponsored Content: Alternatives: Investing Across the Spectrum

    Reader Poll

    May 9, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Are Factors a Thing of the Past?
    Q2 2022 Credit Outlook: Carry On
    Leverage does not equal risk
    Is there a mid-cap gap in your DC plan?
    Out of the Shadows: The Revolution in Shadow Accounting
    The pivotal role of fixed income markets in the ESG revolution
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    May 9, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Innovation Investing Conference
      • 2022 Defined Contribution East Conference
      • 2022 ESG Investing Conference
      • 2022 DC Investment Lineup Conference
      • 2022 Alternatives Investing Conference