arrow_back Back to App

Ending Tax Breaks for Investment Fund Managers

This act changes how income for investment fund managers, paid as profit shares, is taxed. The goal is to ensure this income is taxed as ordinary income, not capital gains, potentially increasing tax burdens for some financial professionals. It also introduces penalties for avoiding these new rules.
Key points
Income from investment management, previously treated as capital gains, will now be taxed as ordinary income, leading to higher taxes for some individuals.
New rules are introduced for valuing partnership interests received for services, which may affect how these transactions are accounted for.
The act imposes stricter penalties (40% instead of 20%) for tax underpayments resulting from attempts to circumvent the new investment management income rules.
Investment management income will be included in the self-employment earnings calculation for social security purposes.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_2686
Sponsor: Rep. Pascrell, Bill, Jr. [D-NJ-9]
Process start date: 2023-04-18
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Ending Wall Street Tax Giveaway Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_2686.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-04-18.

What are the main provisions?

Key points include:

  • Income from investment management, previously treated as capital gains, will now be taxed as ordinary income, leading to higher taxes for some individuals.
  • New rules are introduced for valuing partnership interests received for services, which may affect how these transactions are accounted for.
  • The act imposes stricter penalties (40% instead of 20%) for tax underpayments resulting from attempts to circumvent the new investment management income rules.
  • Investment management income will be included in the self-employment earnings calculation for social security purposes.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Pascrell, Bill, Jr. [D-NJ-9].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Economy