Last week, the Private Equity Growth Capital Council announced Mike Sommers, former Chief of Staff to Hon. John Boehner, as its incoming president and CEO.
The trade association has been at the center of a battle over the carried interest loophole, a ridiculous rule in our tax code that allows managers of private investment funds to pay capital gains rates on money they earn managing other people’s money.
Of course, it makes little to no sense for hedge fund honchos to pay less in taxes than average working folk, and many have called for the loophole’s closing.
Legislators and politicians from Sen. Elizabeth Warren to Donald Trump want to see the loophole closed. But PEGCC doesn’t, and that’s not surprising considering that the loophole, which is based on 16th century shipping law, garners millions in tax savings for their (already wealthy) members.
Now PEGCC has hired Boehner’s right hand man to, well, carry their interests.
In a textbook case of DC’s revolving door hurting regular American taxpayers, Sommers will now be the head lobbyist on an issue he spent years working from the inside. He will lobby with years of knowledge about various lawmakers on Capitol Hill, a clear understanding of which arguments to stress, and what facts to avoid, and a detailed understanding of the committee system and how to stall it if necessary.
Last year, the Patriotic Millionaires joined Rep. Sander Levin (D-MI) and Tammy Baldwin (D-Wis) in a press conference to support closing the loophole.
We still believe the loophole makes no sense and is bad for the country, and call on Mike Sommers and other PEGCC members to join us for an on-the-record discussion/debate about this issue.
Until then, watch this Patriotic Millionaires video to learn more about how the carried interest loophole works, and is “crafted for the…super wealthy.”