Tax Break for Private Equity and Hedge Fund Executives Under Scrutiny
WASHINGTON, D.C. (PRNewswire) - The American Investment Council (AIC) urged President Biden's administration and Congress to preserve the tax policy that allows private equity and hedge fund managers to pay a lower capital gains tax rate on their income.
"Maintaining this policy will foster long-term investment, benefiting jobs, businesses, and communities nationwide," said AIC President Drew Maloney.
The White House has expressed interest in eliminating the so-called carried interest tax loophole, which has been a topic of discussion for over a decade. Maloney argued that since the 2017 tax overhaul, the private equity industry has invested $5.6 trillion in the U.S. economy and supported thousands of small businesses.
However, the Congressional Budget Office estimates that closing the loophole could generate $14 billion in additional tax revenue over a decade.