Last week, we asked you if President Obama would succeed in getting legislation signed to raise the carried interest tax this year. Increasing the tax up to 35% (from 15%) is one of several measures the White House is considering as it seeks to raise the debt ceiling.
A majority, or 57%, said the President wouldn’t succeed in getting a bill signed. But nearly 43% believe the White House will get legislation signed. Currently, hedge fund and PE managers pay a 15% capital gains tax rate on performance fee income.
What does this mean? Not all that much. President Obama talked about raising the carried interest tax last year and nothing happened. That might change this year. Debt talks resumed today at the White House. Republicans don’t want to raise taxes for anyone while Democrats believe some revenue raisers are essential.