The “Patriotic Millionaires” Reiterate Call To End The Carried Interest Loophole
With President Obama’s attention and a looming government shutdown, now is the time to close the loophole once and for all
Washington DC – Today, the Patriotic Millionaires reiterated their call to end the carried interest tax loophole which allows hedge fund managers to pay capital gains rates on income that logically should be characterized as ordinary income. This comes just hours after President Obama called for the closure of the loophole in the upcoming budget showdown with congressional Republicans. Read about the President’s remarks HERE.
“If you ever need proof that money corrupts our political system, look no further than carried interest,” said Patriotic Millionaires Executive Director Erica Payne, “Now is a time when both congressional Republicans and Democrats can show that they will not be intimidated by wealthy hedge fund managers. With support coming from frontrunner presidential candidates Trump, Bush, Clinton, and Sanders, it is clear that now is the time to bring The Carried Interest Fairness Act for a vote.”
In June, Senator Tammy Baldwin (D-WI) and Representative Sander Levin (D-MI) introduced The Carried Interest Fairness Act of 2015, which would have ended the preferential treatment that hedge fund and private equity managers receive. To date, the bill has not been given a vote. Earlier this year, frontrunners from both Republican and Democratic presidential nominating campaigns came out in support of closing the loophole.
Here are quotes from several members of the Patriotic Millionaires regarding the carried interest loophole:
“I used to be in the money management business and the only reason why people who manage money have a lower tax rate than people who actually work for a living is that hedge fund managers are more active at making political donations,” said Patriotic Millionaires Chairperson Morris Pearl, former Managing Director of BlackRock Inc.*
“I am in the hedge fund and private equity business and the carried interest loophole is welfare for the wealthy,” said Patriotic Millionaires Terence Meehan, Chairman of Azimuth Investment Management*
“The real mystery is how this tax break for billionaires has managed to survive all these years when everyone knows that it makes no sense for people who have no capital at risk to receive this kind of favorable tax treatment,” said Patriotic Millionaire Jeffery Gural, Chairman of Newmark Grubb Knight Frank*
“If it quacks like a duck it should be taxed like a duck!” said Patriotic Millionaire Frank Pattitucci, CEO & Owner of NuCompass Mobility*
“Closing the carried interest loophole would be a giant symbolic step toward a more economically equitable America. There is no reason for the loophole other than the political power of the financial industry. How much money do these managers make in a year? The top 25 fund managers make more money combined than all the kindergarten teachers in America,” said Patriotic Millionaire Fred Rotondaro, Chair of Catholics in Alliance for the Common Good*
“At a time when wages for working people have stagnated at 1990 levels and they are paying taxes at ordinary income rates, it is an outrage for a small group of hedge fund operators, often making hundreds of millions of dollars a year, to have their income taxed at low capital gains rates,” said Patriotic Millionaire Guy T. Saperstein, Attorney
“While I am not naive enough to think that changing the ‘carried interest’ loophole will fix all of our spending problems in Washington, eliminating it is the right thing to do,” said Stephen Prince, President & CEO of Card Marketing Services*
*Job titles are for identification purposes only
The Patriotic Millionaires are a group of more than 200 Americans with annual incomes over $1 million and/or assets of more than $5 million who believe that the country’s current level of economic inequality is both dangerous and immoral. They recognize that while there are many causes of inequality, the current level of economic disparity is largely the result of a multi-decade effort by wealthy elites to enact legislation designed to enhance their personal wealth and their political power. The Patriotic Millionaires are dedicated to reversing these policies and ensuring that the legislative capture that led to their adoption comes to an end. They have been covered by major news outlets including the New York Times, Washington Post, CNN, MSNBC, Fox News, The Daily Show, PBS NewsHour and many others. You can find more coverage at www.patrioticmillionaires.org/media and more on the group at www.patrioticmillionaires.org/about/