Democrats’ Carried-Interest Plan Seen as Harsher Than It First Appeared
- Funds may have to hold assets for more than five years
- House plan with tax changes could get a vote by Oct. 1
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House Democrats’ plan to limit a favorite tax break for private equity -- but not do away with it entirely as President Joe Biden had proposed -- is more restrictive than it first appeared, according to investment advisers and attorneys who’ve examined the details of the proposal.
The proposal, which is part of a $3.5 trillion tax and spending package that House leaders say could get a vote by Oct. 1, lengthens the time period investment funds must hold assets to five years, from three years, in order to qualify for a tax break known as carried interest.