Carried Interest Negotiations

Carried Interest On the Table in Deficit Negotiations

Source: GlobeSt.com

Carried interest, it appears, has been placed on the table in the ongoing negotiations between Congressional Democrats and Republicans and the White House over the budget deficit and the debt ceiling. The negotiations are expected to come to a head on August 2nd. Some Democrats and the White House, according to news accounts, want to change the tax characterization of carried interest, which currently allows hedge fund and private equity managers to pay a 15% capital-gains rate on their earnings. Republicans, not surprisingly, are against the move.

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