Private equity is fueling the American recovery.
Investing in businesses, communities, and families across the country.
As the nation continues to recover from COVID-19, the last thing Washington should do is raise taxes on private investors who are helping rebuild the economy, create jobs, and deliver secure retirements for hard working Americans.
Tax increases on carried interest would discourage investment in small businesses, workers, and innovation. Instead of increasing taxes, Congress should focus on delivering policies that will put more private investment to work for families across the country.
Changing the tax treatment of carried interest would have widespread ripple effects, hurting:
- Small businesses nationwide that rely on private equity. Last year alone, private equity helped small businesses keep their doors open and keep Americans employed by investing nearly $650 billion in over 5,250 companies. The vast majority — 86% — of private equity investment went to small businesses employing 500 workers or less, and roughly a third went to businesses with just 10 workers or less.
- Emerging ventures in fields like renewable energy, advanced manufacturing, hospitality, infrastructure, and more.
- Pensions of schoolteachers, first-responders, and other public servants who consistently see strong returns on their retirements because of private equity.
It could jeopardize the hundreds of billions of dollars private equity invests into the economy each year, serving as an important driver of growth. And it would only raise $14 billion in new revenue over ten years, which is less than one-half of one percent of the bill — a drop in the bucket compared to the $3.5 trillion proposed increase in federal spending.
Instead of tax increases, Washington should prioritize policies that increase investment and keep fueling the economic recovery. Tell Congress to oppose changes to carried interest and stop an 98% tax increase on private investment!
Protecting entrepreneurs investing in America’s future
A proposal that would raise taxes on capital investment by 98% would adversely impact small businesses and the next generation of American entrepreneurs. Here’s what business leaders across the country have to say:
“The people who will be impacted the greatest are the small managers and the diverse managers.”– Robert Greene, NAIC
“We need legislation that supports our veterans and businesses. Now is not the time to raise taxes on investors who are helping our communities and providing entrepreneurs with funding needed to remain in business despite economic uncertainty”– Carl Amos Johnson, Grove Street Fiduciary, LLC
“While we may not know how long this pandemic will last, we do know that leaders in Washington must focus on rebuilding our economy. That starts with promoting investments that create jobs and spur economic growth for hardworking Texans, not taxing them”– Glenn Hamer, Texas Association of Businesses
“We urge our federal legislators to prioritize investment and growth – not crippling tax increases that would hurt Main Street America, including our communities here in the Rio Grande Valley.”– Sergio Contreras, Rio Grande Valley Partnership
- Alabama (Rep. Sewell): Private equity directly employs 9,490 people in AL-7.
- Arizona (Sen. Sinema and Rep. O’Halleran): Private equity directly employs 229,000 people in Arizona.
- Colorado (Sen. Hickenlooper and Sen. Bennet): Private equity directly employs 222,000 people in Colorado.
- Florida (Rep. Stephanie Murphy): Private equity directly employs 22,263 people in FL-07.
- Georgia (Sen. Warnock): Private equity directly employs 358,000 people in Georgia.
- Massachusetts (Rep. Richard Neal): Private equity directly employs 16,068 people in MA-01.
- New Hampshire (Sen. Hassan): Private equity directly employs 54,000 people in New Hampshire.
- New Jersey (Sen. Bob Menendez): Private equity directly employs 335,000 people in New Jersey.
- New York (Rep. Hakeem Jeffries): Private equity directly employs 775,000 in New York.
- Ohio (Rep. Beatty): Private equity directly employs 26,975 people in OH-3.
- Texas (Rep. Gonzalez and Rep. Cuellar): Private equity directly employs over 1 million people in Texas.
- Virginia (Sen. Mark Warner): Private equity directly employs 309,000 people in Virginia.
- Washington (Rep. Susan DelBene): Private equity directly employs 2,779 people in WA-1.
- Wisconsin (Rep. Ron Kind & Rep. Gwen Moore):
- Private equity directly employs 1,581 people in WI-03.
- Private equity directly employs 21,698 people in WI-04.
- Illinois (Rep. Brad Schneider): Private equity directly employs 46,564 people in IL-10.
- Delaware (Sen. Thomas Carper): Private equity directly employs 34,000 people in Delaware.
- New Mexico (Sen. Martin Heinrich): Private equity directly employs 59,000 people in New Mexico.