Debate on Carried Interest
22 Pages Posted: 29 Oct 2018
Date Written: October 29, 2018
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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