The omission closes the door on efforts by Democrats to change the tax treatment of carried interest. Carried interest is the compensatory share of an investment partnership?s profits fund managers receive as part of their pay. The pay can qualify for the 15 percent capital gains tax treatment even though it?s a return on labor rather than capital invested.
Baucus Drops Higher Private-Equity Levy From Tax Measure - Bloomberg
They managed to find time to reinstate the estate tax, so that you can work your whole life and pay taxes, and then your kids get to pay the taxes all over again, but they can't get this done. If you don't think that the entire Congress is against "Main Street", this ought to convince you.
You want to complain about people who work and have no tax liability? How about the people who make 6 million a year in "compensation" (you know, like a salary only lots higher) and pay a lower tax rate than the manager at Starbucks?
What frosts me the most about this is that this is treated as investment income when they have no investment at stake. It's a complete perversion of the tax laws. One of many, I know, but a simple one to fix and yet, even in these days of looking for every dollar we can, the Senate still can't get their head out from up the banker's wazoos long enough to consider this.
