Very interesting New Yorker article here on the history of the fight against the US "carried interest" tax loophole for private equity executives, and some biog detail on a few big PE players.
http://www.newyorker.com/magazine/2016/03/14/david-rubenstein-and-the-carried-interest-dilemma
In case anyone is interested in the corresponding UK position - broadly, the worst excesses of personal tax avoidance in that area are being clamped down on, but the basic pro-rich exec unfairness remains under UK tax law, namely that "carry" gains are subject not to income tax but instead to capital gains tax (and hence to lower rates) despite being, on a true economic analysis (strongly contested with bullshit arguments, smoke and mirrors by the PE industry lobbyists) a reward for work rather than a return on risk capital.
http://www.newyorker.com/magazine/2016/03/14/david-rubenstein-and-the-carried-interest-dilemma
In case anyone is interested in the corresponding UK position - broadly, the worst excesses of personal tax avoidance in that area are being clamped down on, but the basic pro-rich exec unfairness remains under UK tax law, namely that "carry" gains are subject not to income tax but instead to capital gains tax (and hence to lower rates) despite being, on a true economic analysis (strongly contested with bullshit arguments, smoke and mirrors by the PE industry lobbyists) a reward for work rather than a return on risk capital.
Comment