U.S. Rep. Marie Gluesenkamp Perez, D-Skamania, introduced a bill Thursday, Feb. 6, that, if signed into law, would put an end to what she calls a “loophole” that allows wealthy money managers to pay taxes at a lower rate than others with similar income.
According to her office, the Carried Interest Fairness Act eliminates the loophole that allows hedge fund managers to pay a 23.8% tax on capital gains instead of the 40% income tax that others pay on the same level of income.
“Our legislation would ensure carried interest income is taxed at ordinary rates — which is an important step toward leveling the playing field in our tax system,” Gluesenkamp Perez stated in a news release. “When wealthy investors have loopholes that give them a lower tax rate than hardworking Southwest Washington families, it’s a serious matter of fairness.”
According to the release, which cited a report by the treasury, resolving the loophole would raise $6.5 billion in revenue over 10 years.
