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Introduction Of The Carried Interest Fairness Act Of 2012

Rep. Sander M. Levin

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Mr. Speaker, I introduce today the Carried Interest Fairness Act of 2012.

The Carried Interest Fairness Act provides that the ``carried interest'' compensation received by investment fund managers will be taxed at ordinary income rates and treated as wage income subject to employment taxes. In exchange for providing the service of managing their investors' assets, fund managers often take a portion of a fund's profits, or a carried interest, usually equal to 20 percent of such profits. The bill clarifies that this income is subject to ordinary income tax rates rather than the much lower capital gains rate. For a technical explanation of the Carried Interest Fairness Act of 2012, please visit my website at .www.house.gov/levin