http://dealbook.nytimes.com/2013/10/22/chance-to-end-billion-dollar-tax-break-for-private-equity/
"At issue is “carried interest” — a term of art that refers to the profits that a private equity adviser makes from investing in companies. Because of what critics term a loophole and private equity firms call common sense, such income is taxed at the capital gains rate of 20 percent instead of as income, which would put it at a maximum of 39.6 percent. That tax treatment has meant that the heads of private equity firms like the Blackstone Group’s Stephen A. Schwarzman pay billions of dollars less in taxes."
We've been reading and discussing about how certain taxes need to be implemented. What are your views on this apparent inequality? These wealthy private equity owners are saving millions through this. Could this have otherwise been spent by the government in its welfare programs and/or to cut down the deficit? Or do you feel that it would be a wrong move for this economy in its current state to change the tax code?
"At issue is “carried interest” — a term of art that refers to the profits that a private equity adviser makes from investing in companies. Because of what critics term a loophole and private equity firms call common sense, such income is taxed at the capital gains rate of 20 percent instead of as income, which would put it at a maximum of 39.6 percent. That tax treatment has meant that the heads of private equity firms like the Blackstone Group’s Stephen A. Schwarzman pay billions of dollars less in taxes."
We've been reading and discussing about how certain taxes need to be implemented. What are your views on this apparent inequality? These wealthy private equity owners are saving millions through this. Could this have otherwise been spent by the government in its welfare programs and/or to cut down the deficit? Or do you feel that it would be a wrong move for this economy in its current state to change the tax code?
Do we help people today or leave in place incentives for growth in the future? Is that the choice here?
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