Subscribe to the Tax Headline RSS feed | Subscribe to the Tax Headline feed via EmailHouse Leaders Balk at Senate’s Proposed Changes to Tax Extenders Bill
June 10, 2010 in Daily Tax Report · Leave a Comment
Key House Democrats expressed opposition June 9 to changes the Senate is considering for the tax extenders bill (H.R. 4213), including the decision to scale back the tax increase on investment managers’ carried interest earnings.
Under Senate Finance Committee Chairman Max Baucus’s (D-Mont.) substitute amendment (S. Amdt. 4301) pending in the Senate, 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.
The rest of the carried interest income would be taxed at capital gains rates if the investment is held for more than one year. For investments held at least seven years, 55 percent of the carried interest income would be subject to ordinary income rates.
