CARRIED INTEREST. A rose by any other name is still a rose. Compensation for service’s rendered by any other name is still compensation for services rendered, In tax speak – that is ordinary income. As opposed to income received on investments – or so-called passive income. Private Equity Firms and Hedge Funds compensate their managers primarily via carried interest. So, while doing the 9 – 5 routine, Mitt Romney, as manager of Bain Capital was being taxed at around 15%. Same as now. Why? Because the influence peddlers sold the idea to the honorable members of Congress. It is a purely “made up” name for income. Earned income. The kind of income a truck driver or pizza maker earns. But truck drivers and pizza makers do not visit K Street in the Nation’s Capitol. Proponents of the low taxation of Equity firm’s executives make the old argument that these folks need special incentive to work hard. Earn lots of money for their clients. That is so much BS it would take years to clean up. Support the administration’s efforts to make carried interest ordinary income.
robertboseley
Just The Facts. That's It.
