Wyden Statement in Response to Chamber of Commerce’s Misleading Carried Interest Report
Washington, D.C.—Senate Finance Committee Chair Ron Wyden, D-Ore., today released the following statement in response to the Chamber of Commerce’s misleading carried interest report:
“One of the most indefensible loopholes in the tax code is the carried interest loophole, which allows wealthy private equity managers to be taxed at lower rates than nurses caring for COVID patients.
“This is such an indefensible tax dodge even Donald Trump railed against it on the campaign trail in 2016. Even though he eventually caved to Republican donors, he knew where the American people were on this issue.
“It’s no surprise we’re seeing the same tired arguments today against the basic proposition private equity managers should pay taxes like working people. Millionaires and billionaires have been making these arguments for decades. It doesn’t matter what the issue is—somehow a billionaire paying their fair share of taxes affects working people. The American people don’t buy these arguments, which is why Republicans’ 2017 tax cuts for the top were so unpopular. In fact, jobs at private-equity backed companies fall by more than 10 percent two years after they are purchased. The wealthy investors are the winners here—not the workers.
“It’s also insulting to the intelligence of every American that somehow COVID vaccines would not have been developed without letting private equity profiteers skim off the top.
“It’s long past time to close the carried interest loophole. My proposal would fully close it—previous bills only addressed half the problem. Importantly, it would raise an estimated $63 billion, significantly higher than the previous estimates for other bills. That’s significant revenue for critical priorities the American people support, like child care, education, and paid leave.”
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