Washington Eyes Carried Interest. Again

WASHINGTON, DC-Carried interest–or rather, the way that carried interest is taxed–is back under Washington’s spotlight. President Obama told the nation on Sunday night, before the Super Bowl, that his focus will be on trimming government waste, reforming expensive healthcare programs—and closing lucrative loopholes. He singled out carried interest as one example.

That announcement was followed up on Monday by Rep. Sandy Levin (D-Mich.), who told Bloomberg Television that the tax preference was unfair. “They’re managing other people’s money, so why should they get a capital gains rate when people who also risk their time pay ordinary income tax if it reaps benefits,” Levin said, (via The Hill). “That’s the basic issue. It’s I think, as the president made clear, inescapable.”