Debate on Carried Interest
157 Tax Notes 1597, (Dec. 11, 2017)
FSU College of Law, Public Law Research Paper No. 897
FSU College of Law, Law, Business & Economics Paper No. 18-14
22 Pages Posted: 29 Oct 2018
Date Written: October 29, 2018
Abstract
In this point-counterpoint article, Johnson argues that the rationales offered by Professors Douglas and Jeffry Kahn do not justify giving fund managers capital gain treatment for carried interests. Johnson argues that the manager's return is entirely labor income, and that the manager has no capital or basis that causes their gains. Partnership taxation should not be available to hide partner-level compensation. The Kahns respond to thatcontention and defend their position.
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