Grover Norquist Fine With Closing Carried Interest Loophole

Anti-tax activist Grover Norquist says doing away with carried interest loophole that allows hedge fund managers to pay lower tax rates wouldn’t be a big problem, as long as it comes with a corporate rate cut, New York Times reports.

  • Norquist, who founded Americans for Tax Reform, says taxing carried interest like regular income could possibly generate $3b in tax revenue over 10 yrs.
  • “You guys can have carried interest; we’ll take a big cut in the corporate rate, and we’ll call it even,” Norquist says
  • Likening attacks on carried interest to a dog chasing a bus, Norquist says that, for Democrats, closing loophole could be more trouble than it is worth
    • ‘‘You didn’t mean to catch the bus, you meant to whine about the bus”
  • NOTE: Both Republican presidential candidates Donald Trump’s and Jeb Bush’s tax plans call for closing loophole