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ICYMI: Minority-Owned Businesses and Advocates Express Strong Opposition to Carried Interest Provisions in Ways & Means Committee Tax Bill

A group of minority-owned businesses and advocates are expressing their strong opposition to the carried interest provisions included in the Ways & Means Committee tax bill in a letter sent to Speaker Nancy Pelosi and House Ways and Means Chairman Richard Neal this morning.

The letter – signed by leaders of the National Association of Investment Companies representing diverse-owned private equity firms and hedge funds, the Black Economic Alliance, the National Black Chamber of Commerce and nearly 20 other groups – explains the harms of House Democrats’ proposed changes to carried interest, which has been treated as capital gains since the Tax Code’s inception in 1913.

The letter was reported on today by Politico’s Morning Tax newsletter and includes this quote:

“As entrepreneurs of color, we believe this proposal will make it harder for us to continue to grow our businesses, support jobs in our communities, and achieve wealth for our families and employees. The Ways & Means Committee’s carried interest proposal stands to undercut the considerable progress that minority and diverse venture capital and private equity firm professionals are making across the country. The carried interest provisions undermine a vital source of capital and investment for minority-owned businesses and communities. Additionally, the provisions will make it harder for diverse entrepreneurs and business owners to climb the ladder of opportunity — after previous generations were allowed to benefit.”

21 business leaders signed the letter to Neal and Pelosi, including:

  • Noramay Cadena (Supply Change Capital): Noramay Cadena is an engineer, entrepreneur, investor, and former nonprofit leader. She’s Cofounder and Managing Partner of Supply Change Capital, a venture capital firm focused on the intersection of food, culture, and technology. In 2020, she was named one of 50 renowned women in robotics, one of 10 Latinas making waves in venture capital, and one of the top 100 influential Latinas in the United States.
  • Marcus Glover (Lockstep Ventures): Cofounder and Managing Director of Lockstep Ventures, a venture capital firm that seeks to address issues that perpetuate racial inequality in the U.S. Marcus has a mission to reimagine equity for Black America and is dedicated to investing and advising Black and women-led companies that are often overlooked, underfunded and underserved.
  • Taj Eldridge (Include VC): A 25+ year investment professional whose career has included high level executive roles in banking, asset management, alternative investments, and entrepreneurship. As General Partner of Include Venture Partners, Taj focuses on investing in diverse founders and fund managers who want to create innovative ecosystems in their areas.
  • Treana Allen (LandSpire): Treana leads legal affairs and services for LandSpire, a Los Angeles-based real estate investment fund that revitalizes communities of color that were once defined by small businesses, livable-wage jobs, and a thriving middle class.
  • Dana Guthrie (Gateway Capital): Managing Partner at Gateway Capital, an African-American-led venture capital fund targeting Milwaukee County and the state of Wisconsin for investment opportunities where she has already raised $13.5 million less than a year after less than a year.

The full letter can be found here.