• Heavier Taxation of Carried Interest Proposed Again — Both in the Jobs Bill and by Rep. Levin
  • March 6, 2012 | Authors: Richard M. Petkun; Sanford C. Presant
  • Law Firms: Greenberg Traurig, LLP - Denver Office ; Greenberg Traurig, LLP - Los Angeles Office
  • Washington keeps coming up with proposals to tax as ordinary income the capital gains derived by fund managers from a carried interest. That idea resurfaced last September in the Obama administration’s proposed American Jobs Act of 2011, and has been put forward again in a bill introduced on February 14, 2012 by Rep. Sander Levin. These most recent legislative proposals, like their predecessors, apply broadly to all funds and joint ventures organized as flow-through entities (partnerships or limited liability companies) in which there are service partners who receive a carried interest (also called a “promote”).