Even Jeb Bush is now urging an end to the “carried interest” loophole that allows partners at private-equity and hedge funds to treat their income as capital gains for the purpose of getting the lower capital gains tax rate – even if they haven’t risked a dime of their own money. The loophole has been in place for years, surviving both Republican and Democratic majorities in Congress. Bill Clinton didn’t end it when he had a Democratic majority, and Barack Obama didn’t eliminate it when he had a Democratic majority. Why has the loophole proved so durable? Because private-equity and hedge-fund executives make gigantic campaign contributions, to both Republicans and Democrats.
Interestingly, Donald Trump has also called for an end to the loophole (which is probably gave Jeb his courage) as has Hillary Clinton and, of course, Bernie Sanders. But the real test is whether Jeb and Hillary will refuse private-equity and hedge-fund money in their campaigns.
For some background you might find useful our video, below.
The TRUTH will set you FREE.
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