MSNBC’s Stephanie Ruhle said there’s one tax loophole that just about everyone on either side of the aisle says needs to be closed. Yet, they’ve done nothing about it for years.
“Carried interest is a share of the profits that personal equity or hedge fund managers take as compensation. It’s a performance fee,” Ruhle explained on MSNBC on Monday night. “And under existing law, this money earned by these executives ― a tiny group of probably the most highly compensated businesspeople on Earth ― they get taxed at a capital gains rate of just 20 percent.”
That’s half the everyday tax rate for other high-income earners.
“SO WHY DOES IT STILL EXIST?” she tweeted:
Watch her fuller explanation of the loophole ― and the one Democratic senator who might block closing it ― below. The clip also features a conversation with former Labor Secretary Robert Reich: