PG, and his ilk, are increasing inequality in this country largely because they are exploiting the carried interest tax loophole whereby they are able to re-cla

PG, and his ilk, are increasing inequality in this country largely because they are exploiting the carried interest tax loophole whereby they are able to re-classify regular income as long term capital gains which is taxed at a much lower rate (now approx 23.9%, but used to be 15%). In any case, both are lower than the top federal rate of 39.6%. Even worse than the VC's are the HF mangers like Dan Loeb and Einhorn who set up re-insurers in Bermuda and push all their earnings here (except the are not declared as earnings (and taxed) but as reserves against future claims (and not taxed)). Carried interest isn't the only bogeyman, but it's by far the largest one at the individual level. There are tons at the corporate level (which is then monenitzed by Tim Cook, et al, by paying themselves in stock which goes up in price as their burgeoning untaxed corporate cash hoards accumulate). I am free marketeer, but all these crony capitalism set asides are anything but the free market in action.