Tax bill's carried interest loophole is a disgrace: Stuart Varney
FBN's Stuart Varney on the inclusion of the carried interest deduction in the Republican tax bill.
I support the tax deal that President Trump is about to sign. I think it’s good for America. Good for the economy.
But now we can see exactly what's in it. And it’s not all good. One thing in particular I think is a disgrace. Carried interest. That’s the special deal that lets hedge fund managers, and big-time private equity guys, pay a much lower tax rate than other top income earners.
A hedge fund manager earns, say $1 million a year? That manager pays a tax rate of 23.8%. A corporate executive, or a sports star, or just about anyone else who earns $1 million a year, pays a top tax rate of 39.6%.
The tax deal was supposed to get rid of this "carried interest". It didn't. It’s still in. The hedge fund guys keep their special deal. And they may have paid for it: Fox Business reports that private equity donated big money to politicians just in time for the special deal to be kept in. That’s politics at its worst.
Bear in mind that other top earners, especially those in New York, New Jersey and California are seeing their tax bill go way up—repeat, up!
I'm inclined to use Bill Clinton's phrase: The rich should pay their fair share. And that definitely applies to hedge fund managers.
It is extremely disappointing to see a Republican Party with a Republican president allow the purchase [of] financial favors.
That’s not what we voted for. Unfortunately, that’s what we got!