Romney Disclosure Reignites Debate Over Carried Interest Tax

[Bill USA]

http://dealbook.nytimes.com/2012/01/17/romney-disclosure-reignites-debate-over-carried-interest-tax/


Romney Disclosure Reignites Debate Over Carried Interest Tax

By PETER LATTMAN


The “carried interest” tax debate that has raged in Congress and on Wall Street over the last half-decade took center stage in the presidential race on Tuesday.

Mitt Romney, speaking at a campaign stop in Florence, S.C., revealed that his effective tax rate was about 15 percent.

“It’s probably closer to the 15 percent rate than anything,” Mr. Romney said. “Because my last 10 years, I’ve — my income comes overwhelmingly from investments made in the past, rather than ordinary income or rather than earned annual income.”

Mr. Romney’s disclosure is sure to reignite complaints that private equity executives — among the nation’s wealthiest individuals — get preferential tax treatment. Private equity executives are taxed at the capital gains rate of 15 percent on most of their earnings, a rate well below the 35 percent tax on ordinary income. Certain hedge fund managers, real estate investors and venture capitalists also earn much of their pay in the form of carried interest.
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[Salviati]

1. How about this plan:

We wait until after he gets the nomination until we rename this "The Romney Loophole"

[wordpix]

2. IOW if you have certain occupations that are financially super risky you get tax breaks

But if you teach kids, fight fires, help poor families, keep the streets safe, make products and otherwise do not engage in high risk financial maneuvering, you're just an average joe who must cough up high taxes.

Wow, what great tax policy that is

Bound to keep the USA on a sound financial footing