US Congressional Proposal Would Tax Carried Interest as Ordinary Income
25 May 2010
Mayer Brown Legal Update
On May 20, 2010, Senate Finance Committee Chairman Max Baucus and House Ways and Means Committee Chairman Sander Levin released the legislative text of H.R. 4213, the American Jobs and Closing Tax Loopholes Act. If passed, this legislation will subject managers of private equity funds, hedge funds, and other investment partnerships to tax at ordinary income tax rates on most of the share of profits they receive as carried interest.