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Ending Tax Break for Investment Managers: Higher Taxes on Carried Interest.

This bill aims to increase the tax burden on managers of hedge funds and private equity firms. It changes how their performance compensation (known as "carried interest") is taxed, treating a larger portion as ordinary income rather than lower-taxed capital gains. This move is intended to generate more federal revenue by ensuring high-earning professionals pay higher tax rates.
Key points
Eliminates the special tax treatment (the "loophole") for income derived from managing investment partnerships (carried interest).
A significant portion of this income will now be taxed at the higher ordinary income rates, instead of the lower long-term capital gains rates.
The changes primarily affect professionals in finance, asset management, and real estate investment businesses.
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Expired
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Additional Information
Print number: 118_S_3317
Sponsor: Sen. Wyden, Ron [D-OR]
Process start date: 2023-11-15
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Ending the Carried Interest Loophole Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_3317.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-11-15.

What are the main provisions?

Key points include:

  • Eliminates the special tax treatment (the "loophole") for income derived from managing investment partnerships (carried interest).
  • A significant portion of this income will now be taxed at the higher ordinary income rates, instead of the lower long-term capital gains rates.
  • The changes primarily affect professionals in finance, asset management, and real estate investment businesses.
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 Sen. Wyden, Ron [D-OR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Economy