Democrats appear to have reached a breakthrough on their show. And the Democrats ultimately buckle to her demands. This tax loophole, which I've been writing about since 2007, just won't die. It is the cockroach of tax breaks. For reasons that remain inexplicable, we are still talking about it today.
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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