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What's at stake is the "carried interest" loophole, and President Obama is pushing to close it.
President Obama has repeatedly, and correctly, called for ending the carried interest loophole.
So the 15 percent rate that some tycoons pay because of the carried interest loophole is a recent, er, entitlement.
The loophole -- the biggest loophole they take advantage of is the carried interest loophole and -- and capital gains loophole.
The New York Times recently commented in an editorial that while the carried interest loophole is unjustified, the core problem is lower tax rates on capital gains generally.
In short, it is a pipe dream to believe that eliminating the capital gains preference is the key to fixing the carried interest loophole.
Similar(16)
The persistence of the highly unpopular carried-interest loophole for hedge-fund managers is simply the most unseemly example.
If we capped the deductibility of corporate debt, and closed the carried-interest loophole, it would not prevent private-equity firms from buying companies or improving corporate performance.
Other changes are politically appealing, like ending the carried-interest loophole for rich investors or the tax breaks for the oil and gas industries.
Tax breaks that encourage the concentration of capital, such as the carried-interest loophole, which dramatically lowers private-equity partners' bills, should be eliminated.
In 2006, Fleischer, then an untenured professor at U.C.L.A., circulated a research paper, his first on the carried-interest loophole, called "Two and Twenty".
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