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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHillary Clinton vows to end “carried interest” loophole — even if Congress won’t
by Matthew Yglesias on June 16, 2016, 2:40 p.m. ET
Hillary Clinton rather casually mentioned in an interview with USA Today, published yesterday, something that's a really big deal if elected president, she will direct the Treasury Department to close the so-called carried interest loophole that allows some financial managers to pay a lower tax rate than normal workers.
The Congressional Budget Office says this move would raise about $18 billion over 10 years, though some independent analysts like Victor Fleischer have come up with much higher numbers.
But it would also address what looks to most people like a question of basic fairness one so elementary that politicians like Donald Trump and Jeb Bush have frequently made a big deal about on the campaign trail. They usually talk about closing the loophole in the context of overall plans to drastically lower taxes on high-income households. Meanwhile, Clintons proposal comes in the opposite context of an overall plan to modestly increase the taxes paid by the wealthiest Americans.
The notion that the Treasury Department can make this change unilaterally is a longtime contention of Alan Wilensky, who was a deputy assistant secretary at Treasury in the 1990s when fund managers began to exploit the opportunity to pay lower rates. President Obamas Treasury Department has generally seemed to deny that it has such authority, but obviously a new administration could at least try to leave the courts to sort it out.
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http://www.vox.com/2016/6/16/11955222/hillary-clinton-carried-interest
PoliticAverse
(26,366 posts)LonePirate
(13,386 posts)villager
(26,001 posts)...when he was on the campaign trail, either.