Trump Should Reject Double Taxation of Carried Interest

Sen. Chuck Schumer wants to tax carried interest

Senator Chuck Schumer (D-NY) was elected the new Senate Minority Leader, and can be expected to push for closing of what some call a “loophole,” the issue of carried interest not being taxed additionally as income. Carried interest is the part of the profit from an investment fund earned by the manager of that fund. This payment to the investment manager comes from funds that have already been subject to corporate income taxes. So there really is no “loophole” to be closed. Subjecting this income to additional taxes will be double taxing the carried interest.

Sen. Schumer, who pledges to work with President-elect Trump despite disagreeing with the new president on almost every major issue of public policy, can be expected to seek legislation to tax carried interest.

Schumer recently stated, “if the president-elect proposes legislation on issues like infrastructure and trade…



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