Ruben Navarrette: We're in a familiar place on the cusp of Congress getting rid of the carried interest tax label. Now the private equity industry goes into overdrawive really super drive this time to try to keep that tax loophole. He says it's like deja vu all over again. They fight, they fight, they lobby and Lobby and eventually they win. The only difference is Donald Trump does not like to pay taxes.
Carried interest is a loophole in the United States tax code that has stood out for its egregious unfairness and stunning longevity.
Typically, the richest of the rich pay 40 percent tax on their income. The very narrow, select group that benefits from carried interest pays only 20 percent.
Earlier versions of the Inflation Reduction Act targeted carried interest. But the loophole has survived. Senator Kyrsten Sinema, Democrat of Arizona, demanded her party get rid of efforts to eliminate it in exchange for her support.
How has the carried interest loophole lasted so long despite its obvious unfairness?
Guest: Andrew Ross Sorkin, a columnist for The New York Times and the founder and editor-at-large of DealBook.
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