(New York Times) — Sometimes, basic common sense can get lost in heated political rhetoric. So can consistency. That has clearly happened in the Congressional debate over whether or not to change the tax treatment on limited partnerships’ carried interest from the capital gains rate to higher ordinary income tax rates. Details of a House bill to raise carried interest taxes were released on Thursday. All the bluster about how it is unfair to give an advantage to this type of income while hard-working Americans pay higher rates has obfuscated how many hard-working Americans benefit in the same way today.
