Democrats’ Bill Targets Private Equity, Hedge Fund Tax Break
- Proposal could become part of Democrats’ tax-increase plans
- Biden has called to raise capital gains rates for the wealthy
Representative Bill Pascrell with U.S. House Speaker Nancy Pelosi in 2020.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Three House Democrats are pushing legislation that would repeal the carried-interest tax break used by fund managers to reduce the levies they owe to the Internal Revenue Service.
The bill would close the carried-interest tax break and require many hedge-fund and private-equity managers to pay higher ordinary income-tax rates, rather than the lower rates on capital gains. Representatives Bill Pascrell of New Jersey, Andy Levin of Michigan and Katie Porter of California are sponsoring the legislation, which could become part of broader talks on taxes in Congress in the coming months.