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View Diary: The Republican Party Has No Idea How To Create Jobs (21 comments)

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  •  I haven't ever seen an estimate in print (0+ / 0-)

    but I would be shocked if changing the taxation of carried interest would raise more than $1 billion a year. To qualify for carried interest you have to be a manager of an investment partnership like a hedge fund, private equity fund or venture capital fund. I would estimate that fewer than 1,000 people in the US earn more than $100,000 annually from carried interest. Add to that the fact the IRS would only be receiving the difference between 20% and 40% and I don't think that's a big pot of gold.

    Just as an aside it's not a loophole. It's a result of a Tax Court case in the early 1970s and every partnership since has been structured to allow for carried interest. Congress could have changed it any time in the last 40 years and hasn't.

    So changing the taxation of carried interest would fund a week or two of extended unemployment compensation.

    To have unemployment compensation extended quickly the Dems will have to propose some other savings acceptable to the GOP. If they don't the Republicans will wait and see if there is any real political damage. If there is they will pass it, if there isn't they won't.

    "let's talk about that"

    by VClib on Thu Jan 02, 2014 at 06:51:24 AM PST

    [ Parent ]

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