One of the most outrageous loopholes in our tax code is the "carried interest" loophole, which allows hedge fund and private equity fund managers to claim part of what is really salary income as capital gains instead. As a result, they pay about 20% in taxes – a lower rate than that paid by millions of middle-class workers like teachers, firefighters, nurses, and customer service workers.
To close this loophole, Senator Tammy Baldwin (D-Wisc.) and Representative Bill Pascrell (D-N.J.) this week reintroduced the Carried Interest Fairness Act, which would close the carried interest tax loophole. CWA strongly supports this bill, which would help level the financial playing field for working people.
"For years, the carried interest tax loophole has allowed some of the wealthiest people in this country to pay a lower tax rate than millions of middle-income workers," said CWA President Chris Shelton. "Meanwhile, our country's infrastructure is crumbling, our young people struggle to pay college tuition, and critical programs like Social Security and Medicare are constantly under threat. It's time to close the carried interest loophole and make Wall Street pay its fair share."