Strong Economy for All Coalition to hold press conference announcing campaign to end the carried interest tax loophole
Legislation has been introduced to end this loophole and ensure hedge fund managers pay their fair share.
WHAT: Press conference announcing a campaign in support of bills H 5563 and S 0259, which would establish a 19-percent fairness fee for investment management services in order to tax the carried interest income of hedge fund and private equity investors as traditional earned income – and which would only take effect if similar legislation also passes in New York, Connecticut, Massachusetts, and New Jersey – states that have the highest concentration of hedge fund and private equity managers.
WHEN: Thursday, March 16, 2017 at 3:15 p.m.
WHERE: The State House library at the Rhode Island State House
WHO: Speakers include:
Senator Adam Satchell (Democrat, District 9, West Warwick)
Sponsor, 2017-S 0259
Representative Aaron Regunberg (Democrat, District 4, Providence)
Sponsor, 2017-H 5563
Michael Kink, Esq.
Executive Director, Strong Economy For All Coalition
Chair, Patriotic Millionaires
Former managing director, BlackRock, a global investment management corporation
Patriotic Millionaire, heir to the Oscar Mayer fortune and author of Born on Third Base
WHY: With inequality at historic highs in America, political and economic power has
become extraordinarily concentrated in the hands of elites, who use that power to rewrite the rules of the game in ways that further their interests. There is perhaps no policy that better embodies this reality than the carried interest tax loophole.
The carried interest loophole allows private equity and investment managers to pay taxes on their income at capital gains rates rather than as normal income - meaning they get away with paying a fraction of what every other working American pays.
Rhode Island’s private equity and hedge funds earn $402 million per year in under-taxed carried interest. A state bill to recapture fair-share tax rates would provide an estimated $40 million per year that could go straight into funding Rhode Island’s most critical needs, like school infrastructure, higher education, and more.
It is time to reclaim the meaning of fair in our tax code. It is time to close the egregious carried interest tax loophole.
“The carried interest deduction only exists because wealthy and powerful money managers have the power to get their way in Congress. States like Rhode Island have a responsibility to address this inequity in the federal tax system —and capture some of the revenue for public investments.” -Patriotic Millionaire Chuck Collins, heir to the Oscar Mayer fortune and author of Born on Third Base
“The carried interest tax loophole is indefensible. It is totally unfair that a private equity manager who directs other people to invest money gets a tax rate that is lower than all of the other Americans who work for a living by using a preferential rate meant for actual investors. This loophole has continued far too long, allowing the wealthy to put more money into their own pockets while regular Americans pay the price. This is simply not fair. Rhode Island has a chance to return millions of dollars to the state and show that the government is controlled by the people, not Wall Street.”
-Morris Pearl, Chair of the Patriotic Millionaires, former managing director BlackRock.
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903