Schumer backs carried interest tax boost

Sen. Schumer wanted to increase the carried interest tax for a variety of partnerships that use a “two-and-20” structure.
AUG 16, 2007
New York Democratic Senator Charles Schumer is drafting legislation that would raise taxes on carried interest for all industries, published reports said. Mr. Schumer wanted to increase the carried interest tax for a variety of partnerships that use a “two-and-20” structure, such as real estate investment trusts, venture capital firms and energy businesses, rather than just limit the tax raise to private equity firms, Reuters reported. “He prefers this approach because it is broader, fairer and will raise more revenue than targeting only publicly traded partnerships,” Mr. Schumer’s spokesman Brian Fallon said to Reuters. The senator, who is also a member of the Senate Finance Committee, may pitch the bill when Congress returns from its summer recess in September. Congress is already weighing proposals that would bump taxes on carried interest as high as 35% —the rate for income tax—from the 15% capital-gains tax rate. Managers say that the carried interest is pegged to a fund’s profit and should be taxed as such, but critics argue that it’s a payment and should be taxed as ordinary income.

Latest News

Mercer Advisors launches Aspen Investing with in-house direct indexing
Mercer Advisors launches Aspen Investing with in-house direct indexing

The $100B-plus mega-RIA is folding custom portfolios, daily tax-loss harvesting and unified managed accounts into its Aspen advisor tech platform

The most valuable professional development opportunities in independent advisory firms are hiding in plain sight
The most valuable professional development opportunities in independent advisory firms are hiding in plain sight

From using projects as strategic thinking exercises to real-world challenges as problem-solving exercises, indie firms can make for more powerful talent incubators.

Financial services faces highest AI exposure of any sector, BCG finds
Financial services faces highest AI exposure of any sector, BCG finds

New BCG research names financial services among the world's most AI-exposed industries and the US as a top-tier AI economy.

Wealth transfer fails when families skip the hard talks
Wealth transfer fails when families skip the hard talks

Rockefeller Capital Management's Mallory Findley on how avoiding conversations risks derailing even the best-laid estate plans.

One in three Americans lose track of old retirement savings after job changes
One in three Americans lose track of old retirement savings after job changes

New Empower research reveals a "retirement drift" problem that hands financial advisors a direct opening to add client value.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor