3 ms·
tl;dr The carried interest provision is a tax benefit offered to some investors, allowing them to multiply their reward in successful ventures by giving them ex
by shawnee_ 10y ago
tl;dr
The carried interest provision is a tax benefit offered to some investors, allowing them to multiply their reward in successful ventures by giving them extra tax breaks when those they fund turn out to be wildly successful.
/ tl;dr
My opinion is that the tax code has long favored the few at the expense of the many, and this loophole is no different.
Rather than concentrating allocation of this reward to a few non-risk-averse investors as extra tax breaks, let things like Regulation A+ actually start working (https://www.sec.gov/rules/petitions/2016/petn4-699.pdf https://www.sec.gov/rules/petitions/2016/petn4-699.pdf), which can spread reward over a greater number of people who can let it contribute to their ordinary income.
- spoonie 10y agoI'm beginning to wonder if income tax should be done away with entirety in favour of Land Value Tax. Yes it's generally easier to track and measure income than land value, but maybe the tax could should do the hard thing rather than the easy thing + a bunch of loopholes. I just wonder if it's possible to find enough revenue from non-income for it to work? (Though a gradual shift, lowering income tax and increasing LVT, would make the transition easier.) Could that be "fairer" to everyone if no one paid any tax on their income? I can think of many small-business or extra-income opportunities that are passed over due to the burden of filing that income (not even the cost of tax itself!). Then again, there is still sales tax/VAT that can be a burden (e.g. VATMOSS).