In a world with an ever increasing wealth gap I think it's unfair and unhelpful that unearned income is given such a huge tax break compared to earned income. Closing the carried interest loophole would be a great, small step in my opinion. Let the LPs keep their long term gains treatment - if the GPs want it too then they should invest as an LP too.
That's not even considering the sticky part where carried interest is a performance fee. And what's a performance fee if not earned - as in earned income.
Thanks for the great explanation
In a world with an ever increasing wealth gap I think it's unfair and unhelpful that unearned income is given such a huge tax break compared to earned income. Closing the carried interest loophole would be a great, small step in my opinion. Let the LPs keep their long term gains treatment - if the GPs want it too then they should invest as an LP too.
That's not even considering the sticky part where carried interest is a performance fee. And what's a performance fee if not earned - as in earned income.