JCT: Levin-Baldwin Bill to Close Carried Interest Loophole would Raise More than $15 Billion
WASHINGTON, DC – House Ways and Means Committee Ranking Member Sander Levin (D-MI) and U.S. Senator Tammy Baldwin (D-WI) today issued the following statements after the non-partisan Joint Committee on Taxation (JCT) estimated that their bill to close the carried interest loophole, the Carried Interest Fairness Act, would raise $15.6 billion in revenue:
“This score further highlights just how much inequality exists in our nation’s tax code,” said Rep. Levin. “When an auto assembly line worker and a fund manager pay drastically different tax rates on their income, we know we have a serious problem. Thankfully, closing the carried interest loophole has gathered more bipartisan support in recent months, joining our push – through this legislation – so all Americans can be treated fairly under the law.”
“This non-partisan report makes clear that closing the carried interest loophole would allow us to invest in economic growth and strengthen the economic security of America’s hard working, middle class families,” said Sen. Baldwin. “Instead of simply rewarding the wealthy with tax preferences, Washington needs to do more to respect hard work, invest in economic growth, and give the middle class a fair shot at getting ahead. At a time when too many Wall Street millionaires pay a lower effective tax rate than some truck drivers, teachers and nurses, we need to work together – Democrats and Republicans – to eliminate this loophole that rewards the wealthy with tax preferences and make sure those at the top are paying their fair share so we can invest in an economy that works for everyone.”
Yesterday, Rep. Levin and Sen. Baldwin released statements following President Obama’s remarks at the Business Roundtable, where he called on Congressional Republicans to close the carried interest loophole and work to improve our nation’s economy. Rep. Levin’s statement can be found here. Sen. Baldwin’s statement can be found here.
There has been broad support from government officials, economists, investors, and editorial boards for closing the carried interest loophole. Read some of those statements here.