Carried Interest

  • Romney campaign dodges tax question

    Mitt Romney used to support the carried interest tax loophole. Now we have no idea.

    Mitt Romney today released his 2010 and 2011 tax returns, which showed that he earned $12.9 million from carried interest, or the percentage of investment profits earned by private equity fund managers. And he also took advantage of a tax loophole that treats carried interest at the capital gains rate of 15%, even though someone else MORE

    - Jan 24, 2012 11:01 AM ET
  • Private equity tax bill coming

    Private equity faces a tax increase. Again.

    Well, that sure didn't take long.

    Just days after Mitt Romney acknowledged that his effective tax rate was approximately 15%, Congressman Sander Levin (D-MI) announced plans to reintroduce legislation that would close the so-called "carried interest" loophole.

    For the uninitiated, carried interest is the percentage of investment profits that a private equity fund manager receives (the remainder -- typically 80% -- goes to the private equity MORE

    - Jan 19, 2012 4:56 PM ET
  • Mitt Romney's tricky taxes

    Romney's tax issue goes beyond the 15%.

    Mitt Romney today admitted the obvious: His effective tax rate is closer to 15% than to the 35% charged on top incomes.

    But there is still a lot we don't know, and Romney's eventual answers could spark a long-overdue change to the way that private equity and venture capital investors pay taxes.

    To begin, Romney's "admission" should have been self-evident to anyone who had taken a look at MORE

    - Jan 17, 2012 2:52 PM ET
  • Obama plan: Higher taxes on private equity

    Obama explains how his jobs bill will be paid for. Private equity will not be happy.

    Earlier today, The Blackstone Group (BX) CEO Steve Schwarzman offered "an olive branch" to President Obama, writing that he would be willing to share economic pain. It only took Obama a few hours to take Schwarzman up on his offer.

    The White House today laid out a series of moves to pay for the $447 billion MORE

    - Sep 12, 2011 3:33 PM ET
  • Lay off Leon Black

    A rich guy threw a party. Get over it.

    Leon Black, head of private equity firm Apollo Global Management (APO), is getting skewered today for spending millions of dollars on his 60th birthday party this past weekend.

    Elton John did the singing, Vera Wang did the dressing and and it didn't help that attendees like Sen. Chuck Schumer (D-NY) and Mayor Mike Bloomberg added to an air of corporatist complicity. For example, MORE

    - Aug 19, 2011 2:30 PM ET
  • Carried interest comebacks

    Last week I wrote a case for raising taxes on private equity, arguing that PE and VC firm profits should be taxed at ordinary income rates rather than at capital gains rates (as they are today). It was in the context of the (now faltering) debt ceiling negotiations, and it also was included in my daily e-newsletter.

    Given that many of my readers would be affected by such a tax change, the MORE

    - Jul 15, 2011 9:18 AM ET
  • The case for raising taxes on private equity

    Raising taxes on "carried interest" is long overdue. 

    I used to write a lot about the tax treatment of carried interest, or the "cut" of investment profits that private equity managers keep for themselves. I would argue that carried interest is a contingency fee for services rendered (investing other people's money), and should therefore be taxed as ordinary income (35%) rather than as capital gains (15%). You know, taxed like the MORE

    - Jul 8, 2011 7:05 AM ET
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