Working Group Releases Paper Demystifying Carried Interest Debate

-For Immediate Release-
September 6, 2007

Contact: Brian Gumm, (202) 234-8494,

Working Group Releases Paper Demystifying Carried Interest Debate

WASHINGTON, Sept. 6, 2007—Following yesterday's announcement of a letter sent by more than 300 national, state and local organizations urging members of Congress to close the carried interest tax loophole, a working group of policy analysts supporting this effort released a paper today for advocates, legislative aides and members of the media.

The paper, "Addressing Objections to H.R. 2834 — the Levin Carried Interest Bill," demystifies objections raised by private lobbyists defending the carried interest loophole and offers effective responses to those objections.

Among the issues covered in the paper are the impact on pension and other fund returns, capital formation and international competitiveness. The paper also describes the scope of H.R. 2834 and assesses estimates of the revenue it would raise.

The paper concludes, "The bottom line is millionaire fund managers should not be able to pay a lower tax rate on their income than the people who clean their offices and answer their phones. It really is as simple as that."

Contributors to the paper include: Professor Lily Batchelder, NYU School of Law and Tax Policy Center; Dana Chasin, OMB Watch; Jonathan C. Goldstein, Thacher Proffitt & Wood LLP; Heather Slavkin, AFL-CIO; and Steve Wamhoff, Citizens for Tax Justice.

The paper is available at /files/budget/addrobjectionstocarriedinterestbill.pdf.

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