Carried Interest Tax Break Targeted in Senate Democrats’ Bill

A group of Senate Democrats are attempting again to kill a tax break enjoyed by investment managers known as carried interest, according to the legislation.

Sens. Sherrod Brown (D-Ohio), Tammy Baldwin (D-Wis.), and Joe Manchin (D-W.Va.) introduced the bill on Monday that would require carried interest income to be taxed at ordinary income rates of up to 40.8% as opposed to the lower 23.8% top capital gains tax rate. Democrats have tried for years to get rid of this tax break. They made the effort most recently when drafting their 2022 tax-and-climate law, but were thwarted by Sen. Kyrsten ...