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To: BMCinSC

The problem is that “carried interest” in assets still held within the Bain umbrella is only ever taxed at the cap gains rate of taxation. It’s a tax loophole specifically applicable to the private equity industry. Charles Grassley has been trying to change it for years, because it’s actually fairly sneaky, but the lobbyists have stopped it from being changed.


5 posted on 01/27/2012 2:49:43 PM PST by babble-on
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To: babble-on

the carried interest is paid from which income stream pre or post tax? answer post, ergo those payments have already been taxed at the corporate rate. If the gov wants to let companies pay pretax income to investors, then ok let investors pay personal income tax rates. The disruption that would cause would be huge however.


10 posted on 01/27/2012 3:30:44 PM PST by waynesa98
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