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The carried interest loophole has certainly helped as it keeps costs artificially low. It also short changes social security and Medicare.
by moorhosj 8y ago
The carried interest loophole has certainly helped as it keeps costs artificially low.
It also short changes social security and Medicare.
- travisoneill1 8y agoMaximum taxable earnings for SS is $128,400. Everybody who takes advantage of the carried interest loophole draws a regular salary too, and it's much higher than 128K, so no effect.
- moorhosj 8y agoNot quite, although I guess it is technically a different loophole. > Another sharp difference involves a tax category called self-employment tax, a substitute for Social Security and Medicare taxes paid by filers who don’t have regular paychecks. Rauner’s returns show he paid no self-employment tax in 2015 and 2016, years in which he collectively reported nearly $279 million in adjusted gross income. In 2014, Rauner paid just $152 and last year just under $20,000. The IRS has recently begun cracking down on investors in limited liability corporations such as those in private equity for underreporting income subject to Social Security and Medicare tax. A 2016 study by the federal agency estimated such underreporting had cost the two financially struggling entitlement programs for retirees $65 billion between 2008 and 2010 alone. https://www.politifact.com/illinois/article/2018/oct/21/rauner-pritzker-tax-disclosures-rich-avoidance/ https://www.politifact.com/illinois/article/2018/oct/21/raun...