Press Releases
ICYMI: Congressional Republicans Refuse to Close Tax Loophole for Wealthy Fund Managers
Politico: “The tax writing Ways and Means Committee has privately indicated it’s not inclined to close the so-called carried interest loophole…”
WASHINGTON, DC – New reporting from POLITICO reveals that congressional Republicans appear poised to keep in place the carried-interest loophole, a tax break for venture capital, private equity, and hedge funds, that critics label “perhaps the most egregious loopholes in the tax code.”
This loophole lowers the tax rate paid by these wealthy fund managers from 37% to 20%. Despite several attempts from both Republicans and Democrats to close this loophole, lobbying by private equity and hedge funds appears poised to win again. According to POLITICO, “the American Investment Council, an association of private equity and credit firms, spent $710,000 in the first quarter of 2025 lobbying on policies that include tax treatment for carried interest.”
Congressional Republicans can’t help but look out for interests of the very wealthy at the expense of everyone else.The carried-interest loophole is a cheat code for the wealthiest in our country to pay less taxes, and the failure to close it yet again would be a direct result of the lobbying effort by private equity and hedge fund executives. Congressional Republicans are taking their cues from their lobbyists and donors, and the American people will suffer devastating cuts to their healthcare, food assistance, and education as a result. All in service of helping out the richest people in this country.”
Accountable.US Executive Director Tony Carrk.
Other key points from POLITICO’s reporting:
“The tax writing Ways and Means Committee has privately indicated it’s not inclined to close the so-called carried interest loophole in the GOP’s sweeping tax package.”
“If the carried interest provision does fall out of the GOP’s sweeping tax package, it would reaffirm the tax break’s standing as one of the most notoriously difficult to kill in Congress — despite critics calling it perhaps the most egregious loopholes in the tax code. Carried interest refers to the share of profits earned by partners of private equity, hedge fund and venture capital firms. Instead of the 37 percent top income tax that the managers would otherwise have to pay, the carried interest is instead taxed at the long-term capital gains rate of 20 percent.”
“According to lobbying disclosures, the American Investment Council, an association of private equity and credit firms, spent $710,000 in the first quarter of 2025 lobbying on policies that include tax treatment for carried interest.”
