[Congressional Record Volume 158, Number 24 (Tuesday, February 14, 2012)]
[Extensions of Remarks]
[Page E187]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCTION OF THE CARRIED INTEREST FAIRNESS ACT OF 2012

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                          HON. SANDER M. LEVIN

                              of michigan

                    in the house of representatives

                       Tuesday, February 14, 2012

  Mr. LEVIN. Mr. Speaker, I introduce today the Carried Interest 
Fairness Act of 2012.
  The Carried Interest Fairness Act provides that the ``carried 
interest'' compensation received by investment fund managers will be 
taxed at ordinary income rates and treated as wage income subject to 
employment taxes. In exchange for providing the service of managing 
their investors' assets, fund managers often take a portion of a fund's 
profits, or a carried interest, usually equal to 20 percent of such 
profits. The bill clarifies that this income is subject to ordinary 
income tax rates rather than the much lower capital gains rate. For a 
technical explanation of the Carried Interest Fairness Act of 2012, 
please visit my website at www.house.gov/levin.

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