When Robert Reich said last month that Congress should change the tax treatment of carried interest, more than a few peHUB readers derided the former U.S. Labor Secretary as being an out-of-touch socialist who’s never worked in the real (read: capitalist) world. If you’re one of those readers, you’re going to need a new avenue of attack for the latest addition to the tax change chorus: Robert Rubin.
Rubin also served in the Clinton White House — he was Treasury Secretary — but he’s been anything but a financial outsider in the years since. Instead, he’s been chairman of the executive committee at Citigroup, which makes a fortune off of all types of private equity-related fees and investments.
He participated yesterday in a tax reform panel hosted by left-leaning think tank Hamilton Project, and reportedly said the following: “It seems to me what is happening is people are performing a service, managing peoples’ money in a private equity form, and fees for that service would ordinarily be thought of as ordinary income.” He added that this was his own personal opinion — not that of Citigroup — and that he would support Congressional analysis of the matter.
Ok defenders of the status quo, take your shots. But they’ll have to be a bit more creative (and a bit less personal)…