The carried interest tax loophole is an income tax avoidance scheme that allows private equity and hedge fund executives — some of the richest people in the world — to substantially lower the amount they pay in taxes, exacerbating income and wealth inequalities.
The federal tax code includes many tax breaks and loopholes that provide tremendous cash benefits to real estate investors, developers, and corporate landlords. Closing these loopholes would generate billions of dollars in revenue.
“Financialization has been the elephant in the room of economic policy debate — a huge contributing factor to the skyrocketing incomes of a few and the nonliving wages of many, and a force that helps explain our neglected infrastructure, underfunded schools, outlandishly expensive colleges and the phenomenon of graduates impoverished by the high-interest loans that banks thrive on these days.”
“The President’s State of the Union address tonight will continue a conversation about the problem of growing inequality. If we are going to reverse the trend and set this country on a path toward broadly shared opportunity and prosperity, steps to rein in Wall Street excess and reshape the rules of the game for the financial system will need to have a prominent place on the To Do list.”