How Carried Interest Helps High-Income Taxpayers?

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By The Exchange Team

On Sunday, Senate Democrats passed historic climate, healthcare, and tax legislation.

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But Sen. Kyrsten Sinema, D-Ariz., opposed a proposed change to carried interest rules.

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The bill is now headed to the House, where it is expected to be passed this week.

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Democrats and opponents call carried interest's lower tax rate a loophole.

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Because it allows wealthy investment managers to pay a lower tax rate than some of their employees and other Americans.

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Steve Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center, said it benefits the wealthy.

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"Why should a private-equity manager's compensation be structured with low-taxed gains?" That doesn't seem right.", He Added.

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