Lawmakers hope to tag carried interest tax increases on to payroll tax bill
As lawmakers work to extend the payroll tax past its February 29 deadline, they continue to run up against the hurdle of compensating for lost revenues.
However, now some Democrats are examining closing tax breaks for the wealthy to make up for the approximately $170 billion cost incurred by extending payroll tax cuts, unemployment benefits and certain protections for doctors who accept Medicare, Reuters reports.
Additionally, Republican candidate Mitt Romney, co-founder of private equity firm Bain Capital, has provided inspiration for the party's lawmakers, who assert that the segment of income earned by hedge fund and private equity managers called "carried interest" should be taxed the same as salary income at rates of up to 35 percent.
"There's no reason there should be special rules and special tax breaks that apply to people that put none of their own capital at risk when people who are earning paychecks in manufacturing are paying much higher rates," Representative Chris Van Hollen told the source.
Recently, Romney released his tax records, revealing that he paid a tax rate of 15 percent last year.
However, now some Democrats are examining closing tax breaks for the wealthy to make up for the approximately $170 billion cost incurred by extending payroll tax cuts, unemployment benefits and certain protections for doctors who accept Medicare, Reuters reports.
Additionally, Republican candidate Mitt Romney, co-founder of private equity firm Bain Capital, has provided inspiration for the party's lawmakers, who assert that the segment of income earned by hedge fund and private equity managers called "carried interest" should be taxed the same as salary income at rates of up to 35 percent.
"There's no reason there should be special rules and special tax breaks that apply to people that put none of their own capital at risk when people who are earning paychecks in manufacturing are paying much higher rates," Representative Chris Van Hollen told the source.
Recently, Romney released his tax records, revealing that he paid a tax rate of 15 percent last year.
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