Press Releases

On Friday, U.S. Representative Matt Cartwright (PA-08) reintroduced the Bill Pascrell Ending Tax Giveaway Act, legislation to close the controversial carried interest loophole.

Carried interest is a form of compensation received by wealthy private equity and hedge fund executives that is taxed well below top wage income rates.

The bill was originally introduced by the late U.S. Rep. Bill Pascrell Jr. (NJ-09), who represented New Jersey in Congress for more than 27 years before his death on Aug. 21^st. Pascrell championed legislation to close the carried interest loophole for years, beginning in the 116^th Congress. 

“Bill was a revered public servant who made tax fairness his top priority and fought to ensure ultra-wealthy Americans benefiting from preferential tax treatments would finally pay their fair share,” said Congressman Cartwright. “I’m proud to reintroduce this legislation in Bill’s honor. The carried interest loophole is yet another way special interests have rigged the system to their advantage, at the expense of everyday taxpayers. Wealthy fund managers shouldn’t pay less taxes than hard working Americans.”

Multiple organizations signed on to endorse Pascrell’s original legislation.  When it was introduced, the following comments were made:

“Americans for Tax Fairness strongly endorses this legislation to ensure that private equity, real estate, and hedge fund executives pay the same top tax rate on their income that other working Americans pay on theirs. This egregious loophole has survived thanks to hefty campaign contributions and backroom deals. It’s time to close this loophole once and for all,” said David Kass, Executive Director of Americans for Tax Fairness.

“There is absolutely no economic or moral justification for the continued existence of the carried interest loophole. Ultra-wealthy private equity and hedge fund managers do not need or deserve preferential tax treatment on income they earn from managing other people’s money. There is no shortage of people willing to work as hedge fund managers. If Congress needs to give a special tax incentive to get people to fill a need, they should have teachers or emergency room nurses pay half the tax rates that everyone else pays. Lawmakers need to show the American people that they have the guts to stand up to Wall Street and pass the Ending Wall Street Tax Giveaway Act to get rid of this egregious, pointless, and outrageous loophole once and for all,” said Morris Pearl, Chair of Patriotic Millionaires.

“Private equity and hedge fund executives rig the tax code so they pay less than Black, white, and Brown working people,” said Porter McConnell, Take on Wall Street Campaign Director at Americans for Financial Reform. “Carried interest is the textbook example of Wall Street’s tax cheats. It’s time to pass the Ending Wall Street Tax Giveaway Act and close this outrageous loophole.”

“For far too long, the carried interest loophole has allowed millionaire Wall Street hedge fund and private equity managers to pay lower tax rates than the working families who carry and continue to build the American economy. CWA is proud to support the Ending Wall Street Tax Giveaway Act, as it levels the playing field by closing that arcane tax loophole and forcing Wall Street to pay their fair share.” said Dan Mauer, Director of Government Affairs for the Communications Workers of America (CWA).