The Carried Interest Controversy: Let's Not Get Carried Away

  title={The Carried Interest Controversy: Let's Not Get Carried Away},
  author={Noel B. Cunningham and M. Engler},
Fueled by significant press scrutiny, the tax treatment of "carried interests" has generated intense controversy in the tax academy and on Capitol Hill. Carried interests are profit shares granted to investment fund managers in exchange for services. Under current law, wealthy fund managers often report the income from the compensatory carried interest at the low 15% capital gains rate. This has provoked the recent outrage since ordinary workers pay tax on their compensation at regular rates as… Expand
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