John,
President Biden ran on a promise to tax wealth like work. Closing the Carried Interest Loophole that’s allowing Wall Street money managers to cut their taxes nearly in half would help deliver on that promise.
Tell Congress to include the Ending the Carried Interest Loophole Act in the Build Back Better legislation so that a Wall Street money manager’s income is taxed just like normal income from work. There’s no reason they should pay a lower tax rate on their income than you and I do, nor be able to defer payment of taxes for years. Click here to send a message to your members of Congress today!
Check out Frank’s email below, which explains how Wall Street money managers are able to cut their tax rate from 37% down to just 20% and how Senators Wyden’s and Whitehouse’s new bill will close that loophole, generating $63 billion in revenue over 10 years.
Thank you for fighting to unrig our tax system and finally tax wealth like work.
Sarah Christopherson
Legislative and Policy Director
Americans for Tax Fairness Action Fund
-- Frank's email --
John,
Wall Street money managers don’t pay their fair share of taxes like you and I do. A loophole known as the “Carried Interest Loophole” cuts their taxes nearly in half on income earned by overseeing other people’s investments―and they can defer those payments until the investments are sold, which can be years.
That means they can pay a lower tax rate on their millions in Wall Street winnings than many nurses, teachers and firefighters pay on their wages each year.
Closing this loophole would generate $63 billion in revenue over ten years, which could be invested in everything from affordable healthcare to eldercare to childcare and more.
Democrats are getting close to a deal on the Build Back Better agenda and we’re demanding that Congress finally use this moment to unrig our tax code and make the rich and corporations pay their fair share.
Write to your members of Congress today and urge them to include the Ending the Carried Interest Loophole Act in the Build Back Better agenda to ensure Wall Street money managers start paying their fair share.
This bill, introduced by Senators Ron Wyden (D-OR) and Sheldon Whitehouse (D-RI), would effectively tax money managers on all of their compensation annually at ordinary-income tax rates. Instead of paying a tax rate of 20%, which is the top tax rate on investment income, money managers should be paying the top wage tax rate of 37%. After-all, this is income earned through work, not through their own personal investments.[1]
This would also keep to President Biden’s pledge to not raise taxes on anyone earning under $400,000 in the Build Back Better plan.
As Congress closes in on a final Build Back Better package, they need to hear from us! Click here to send a message to your senators and representative and tell them to include the Ending the Carried Interest Loophole Act in the final bill.
Together, we’re working to unrig our tax system to invest in working families and our future. Thank you for continuing to fight.
Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund
[1] “Wyden, Whitehouse Bill Ensures Private Equity Moguls Pay Fair Share In Taxes,” Senate Committee on Finance website, Aug. 5, 2021
