Subscribe to the Tax Headline RSS feed | Subscribe to the Tax Headline feed via EmailSenate Finance Committee Amends House-Brokered Tax Extenders Bill to Soften Carried Interest Tax Increase
June 9, 2010 in Daily Tax Report · Leave a Comment
The Senate began debate on an updated version of a tax extenders bill (H.R. 4213) June 8 that would scale back the tax increase on investment managers’ carried interest earnings, making it all but certain that the bill will again be returned to the House.
Although House lawmakers said they had worked with Senate leaders to negotiate a bill that could pass both houses of Congress, the first action of Senate Finance Committee Chairman Max Baucus (D-Mont.) was to modify the carried interest language and further increase the excise tax on oil in an effort to secure the requisite 60 votes for passage.
Under the Senate’s version of the American Jobs and Closing Loopholes Act, 65 percent of carried interest earned by investment fund managers would be taxed at ordinary income tax rates of up to 39.6 percent, instead of the 15 percent capital gains tax rate for which they currently qualify.
