Congressional Democrats Target Private Equity Tax Break
- Carried interest could be a focus after 2020 elections
- Trump has said tax break is akin to ‘getting away with murder’
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Democrats are beginning to flex their legislative muscle over ending a popular tax break used by private equity and hedge fund managers that is nearly universally despised in the party.
Senator Tammy Baldwin of Wisconsin and Representative Bill Pascrell of New Jersey re-introduced legislation Wednesday that would end the break known as carried interest. The provision allows fund managers to have some of their income taxed at the 23.8 percent capital gains rate, rather than the top ordinary rate of 37 percent.