Venture Capital Journal and PEI Media are asking GPs to take an anonymous five-question survey about how the US proposed taxes on carried interest would impact their operations.
Currently, the “carried interest loophole” allows investment managers to pay the lower 20 percent long-term capital gains tax rate on income received as compensation, rather than the ordinary income tax rates of up to 37 percent that they would pay for the same amount of wage income. The proposed Build Back Better act would require carried interest income to be taxed at ordinary rates. Closing this loophole will raise $15 billion in revenue over 10 years.
Tell us what you think about ending the carried interest tax loophole. How will it impact your operations? And if carry is taxed at a higher rate, how would this affect your alignment with LPs?