Geithner Says Carried Interest Tax Rate May Need Raise
“If you look at any tax reform proposal out there that has any patina of bipartisan support, they believe we have to rethink how we treat investment income and carried interest,” Geithner said at a conference in New York today.
Under current law, a manager’s profits from a private- equity fund, known as carried interest, are considered capital gains and therefore taxed at 15 percent.
“Obviously, carried interest doesn’t raise that much revenue,” Geithner said. “If you’re not going to do that, whose taxes are you going to raise?”
Geithner was speaking at the CNBC Institutional Investor Delivering Alpha Conference.
To contact the editor responsible for this story: Chris Wellisz at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.