Private Equity firms bought Congress to retain Carried Interest tax break

[Brian4Liberty]

Brian, I love you... but this tax cut is a positive no matter what.

Regardless is the imperfections, giving less money to the crooks in D.C. is a good thing.

Please correct me if I am wrong here.

Carried interest "loophole" = Tax deduction

Deductions that reduce tax liabilities means less money for politicians to spend. Less money in politicians hands = more money in private hands.

More deductions > less deductions

Private hands > government hands

Free markets > government contracts

Some win > no win

My goal is Ron Paul's goal. Reduce the income tax to 0%.

Of course. No personal income tax at all is the goal.

My understanding is that the carried interest loophole allows money managers to categorize their adviser/management income as long term capital gains, which is taxed at a much lower rate. So it's not a deduction. It's a special categorization.

I like lower taxes more than most people, but if they insert a section into the code stating that actor's wages based on box office take shall be taxed at a lower rate (because everyone loves actors and they deserve a tax break), I won't be celebrating.

Either way, my preference is for lower rates for all. Deductions, write-offs and complexities enable cronyism and social and economic "engineering".

 

[Swordsmyth]

Of course. No personal income tax at all is the goal.

My understanding is that the carried interest loophole allows money managers to categorize their adviser/management income as long term capital gains, which is taxed at a much lower rate. So it's not a deduction. It's a special categorization.

I like lower taxes more than most people, but if they insert a section into the code stating that actor's wages based on box office take shall be taxed at a lower rate (because everyone loves actors and they deserve a tax break), I won't be celebrating.

Either way, my preference is for lower rates for all. Deductions, write-offs and complexities enable cronyism and social and economic "engineering".

The worst thing about such special treatment is that the recipients then feel free to vote for higher taxes on the rest of us.