One Thing They Could Have Done
Others will explain how awful the new tax act really is. I want to tell you about one thing Congress could have done to reduce the cost of their gift to the very wealthy and big corporations.
DONALD TRUMP, AUGUST 2016: We will eliminate the carried interest deduction, well-known deduction, and other special interest loopholes that have been so good for Wall Street investors, and for people like me.
The new tax act doesn’t touch carried interest. Surprised?
The carried interest loophole allows extremely wealthy investment managers to pay lower taxes than teachers, nurses, and other hard-working Americans. It has nothing to do with the interest you receive on your savings account. Managers of investment partnerships – private equity funds, venture capital funds, and real estate partnerships, for example – often receive compensation for their work in the form of an interest in partnership profits that they don’t have to pay for. The interest is “carried” by other investors. Rather than paying taxes on this income at the same rates regular people pay on their compensation, investment managers pay tax at the much lower capital gains tax rate.
Figuring out how much money could be saved to offset the deficit isn’t easy. But in 2009 and 2010, estimates for various legislative efforts ranged from about $14 billion to $25 billion over 10 years. That’s real money.
With this bill, Republicans have only further demonstrated that their top priority is lining the pockets of their wealthy donors. I think that you deserve a representative on the County Council who you know will represent you, and that's why I'm participating in public financing. I can't accept big checks from wealthy donors, and I can't take money from PACs or corporations.
While what's happening in Washington is frustrating, at the local level we have a chance to make a real difference. That's why, after a career in law, policy, and advocacy, I'm running for the County Council. Especially now, we really have to rely on our local government to protect our rights and invest in our priorities.