The Taxation of Carried Interest: Understanding the Issues

16 Pages Posted: 21 Feb 2013

See all articles by Alan D. Viard

Alan D. Viard

American Enterprise Institute

Date Written: September 2008

Abstract

Congress has recently considered taxing the carried interest of private equity fund managers at ordinary rates rather than at the 15 percent rate that currently applies to a portion of this income. The proposed change is intended to promote neutrality between the labor compensation of fund managers and other types of labor income. The case for reform, though, is less compelling than initial appearances suggest. The proper treatment of carried interest raises difficult second-best questions.

Suggested Citation

Viard, Alan D., The Taxation of Carried Interest: Understanding the Issues (September 2008). National Tax Journal, Vol. 61, No. 3, 2008, Available at SSRN: https://ssrn.com/abstract=2221668

Alan D. Viard (Contact Author)

American Enterprise Institute ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States
(202) 419-5202 (Phone)
(202) 862-7177 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
117
Abstract Views
629
Rank
427,869
PlumX Metrics