What is Carried Interest? Private equity is an important driver of economic growth in the US with firms investing hundreds of billions of dollars into the U.S. economy each year. However, there are a lot of misconceptions about the industry. This is a short whiteboard video about a commonly misunderstood aspect of private equity: carried […]
RE: Current Treatment of Carried Interest Capital Gains Is Appropriate and Should Be Retained Dear Chairman Hatch and Ranking Member Wyden: We are pleased to submit this letter on behalf of the members of the American Investment Council (“AIC” or “we”, as applicable) in response to Chairman Hatch’s request for comments on comprehensive tax reform […]
By James Maloney: In his Oct. 16 Congress Blog post for The Hill, “What the carried interest tax loophole reveals about our corrupt political system,” Morris Pearl builds an argument based on inaccuracies. He claims that the top 25 hedge fund managers in the U.S. paid a lower tax rate than kindergarten teachers because of […]
By Mary Petrovich: There is a strong consensus among presidential candidates and the general public that our tax code is too complex and in need of reform. As a business owner, I agree. However, I also believe we should not abandon policy that drives growth and innovation in our economy for political expediency. The tax treatment […]
What is it? Carried interest capital gains is important because it serves to align a fund manager’s interests with those of the fund’s limited partners (LPs), like pension funds, university endowments, and charitable foundations. If the fund does well, the general partner shares in the gains; if the fund does poorly, the general partner receives […]
SUBMITTED ELECTRONICALLY RE: Carried Interest is Appropriately Taxed as Capital Gains Income and Should Remain So in Tax Reform. Dear Chairman Hatch, Ranking Member Wyden, Senator Grassley, Senator Stabenow and Senator Enzi: This letter is submitted by the Private Equity Growth Capital Council (“PEGCC” or “we”, as applicable) in response to the Finance Committee’s invitation […]
By Diana Furchtgott-Roth President Obama’s proposal to tax certain returns on investments, known as “carried interest,” as ordinary income would raise taxes on some investment partnerships. It would bring in $14 billion over 10 years to Uncle Sam, but its disincentive effects on investment could be far greater. That is because firms would make fewer […]
Please click here for a PDF version. SUBMITTED ELECTRONICALLY April 15, 2013 The Honorable Dave Camp Chairman Committee on Ways and Means United States House of Representatives 1102 Longworth House Office Building Washington, DC 20515 The Honorable Sander Levin Ranking Member Committee on Ways and Means United States House of Representatives 1106 Longworth House Office […]
In a Wednesday Wall Street Journal op-ed, Pam Hendrickson, COO of The Riverside Company, makes the case that carried interest is taxed appropriately as a capital gain, and that in the end, businesses across America benefit. “Some have characterized it as an unfair loophole that must be closed,” writes Hendrickson. “But from where I sit, […]
By Pam Hendrickson Ms. Hendrickson, the chief operating officer of The Riverside Company, a private-equity firm, and a member of the Private Equity Growth Capital Council, and vice chairman of the Association for Corporate Growth. Members of both political parties seem to be inching toward the conclusion that a simpler, fairer tax code will help […]