Term Sheet

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Andreessen: Change carried interest tax

March 2, 2012: 9:13 AM ET

Venture capitalist Marc Andreessen believes that carried interest should be treated as ordinary income, according to comments made this morning on CNBC's Squqak Box.  He is the latest in a small, but growing number of influential VCs who agree with President Obama that they are paying too little tax on investment profits derived from third-party capital:

"My personal view is carried interest should be treated as ordinary income. It's a fee for service. An incentive fee on somebody else's capital... I would favor reforming it."

It's worth noting, however, that Andreessen's support of Obama's proposed carried interest change does not extend to an endorsement of Obama as Commander-in-Chief. According to Federal Election Commission records, Andreessen has donated $100,000 to Restore our Future, a SuperPAC supporting Romney. He says that he is now firmly a Republican, after having historically backed candidates and organizations of  both parties.

Here's the full interview:

Join the Conversation
About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

Email a Tip | @danprimack | RSS
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by WordPress.com VIP.