MSNBC Host Succinctly Nails Problem With America's Most Outrageous Tax Loophole




 

MSNBC's Stephanie Ruhle said there's one tax loophole that nearly everyone on both sides of the aisle says should be closed. Yet, they've done nothing about it for years.

That may soon change as the deal struck last week between Sen. Joe Manchin (D-W.Va.) and Senate Majority Leader Chuck Schumer (D-N.Y.) could finally close what's known as the carried interest loophole.

"Carried interest is a share of the profits that private equity or hedge fund managers take as compensation. It's a performance fee," Ruhle explained on MSNBC on Monday night. "And under existing law, this money earned by these executives ― a tiny group of the most highly compensated businesspeople on Earth ― they get taxed at a capital gains rate of just 20 percent."

That is half the typical tax rate for other high-income earners.

"SO WHY DOES IT STILL EXIST?" she tweeted:

Watch her fuller explanation of the loophole ― and the one Democratic senator who might block closing it ― below. The clip also includes a conversation with former Labor Secretary Robert Reich:

This article originally appeared on HuffPost and has been updated.

COMMENTS

More Related News

Senate advances deal to fund government ahead of Friday deadline to avert shutdown
Senate advances deal to fund government ahead of Friday deadline to avert shutdown

The Senate voted Tuesday to move forward with funding the government through mid-December ahead of a Friday deadline to avert a shutdown.

Manchin Pulls Energy-Permitting Plan From Government Funding Bill
Manchin Pulls Energy-Permitting Plan From Government Funding Bill

(Bloomberg) -- The Senate voted Tuesday to advance a stop-gap funding bill to keep the government running after Senator Joe Manchin dropped his bid to...

U.S. lawmakers want Biden to take action on outbound investment to China
U.S. lawmakers want Biden to take action on outbound investment to China

WASHINGTON (Reuters) -A group of lawmakers including House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer and Republican Senator John Cornyn on...

Democrats unveil spending bill to finance gov
Democrats unveil spending bill to finance gov't, aid Ukraine

Democratic lawmakers have unveiled a stopgap spending measure to finance the federal government through Dec. 16., provide additional support to Ukraine and...

Mitch McConnell: Democrats need more moderates like Sen. Kyrsten Sinema
Mitch McConnell: Democrats need more moderates like Sen. Kyrsten Sinema

Arizona Sen. Kyrsten Sinema, a Democrat, discussed her friendship with Mitch McConnell and the importance of both the filibuster and bipartisanship.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Latin America