“Some hedge fund managers and private equity managers are taking home
more than $100 million a year in what is called ‘carried interest’
income…being taxed at the long-term capital gains rate of 15%. They are
not paying the higher rate for ordinary income. Now, professional
athletes, Silicon Valley executives and lawyers on contingency fees will
also often take home a great deal of income. God bless them!…They tend
to pay taxes at the ordinary income rate.”
— Senate Finance
Committee Chairman Max Baucus,
D-Mont., during the committee’s
hearing
on carried interest, July 11 .
