Campaign for Liberty cosigned a letter to Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan opposing a “carried interest tax,” which is a tax on short-term capital gains. Like all such taxes, carried interest taxes games new business and jobs.
Unfortunately, some in Congress, such as Representative Tom Rice (SC-7) are still pushing this tax as a mess “offsetting” the revenue loss from lowering taxes. Campaign for Liberty supports offsetting tax cuts with spending cuts.
Campaign for Liberty supporters who oppose limiting tax reform with job departing tax increases should call their Representatives and Senators and tell them to oppose putting a carried interest tax increase in tax reform.
Here is the letter on carried interest reform:
March 9th, 2017
The Honorable Paul D. Ryan Speaker of the House
U.S. House of Representatives H-232, The Capitol Washington, D.C. 20515
The Honorable Kevin Brady
Chairman, Committee on Ways and Means U.S. House of Representatives
1102 Longworth House Office Building Washington, D.C. 20515
Dear Speaker Ryan & Chairman Brady:
On behalf of the undersigned organizations, we write in support of your efforts to pass pro-growth tax reform and urge you to oppose efforts to increase taxes on capital gains.
The next four years represents an opportunity to reduce -- not increase taxes on capital gains. Over the past eight years, the top rate increased from 15 percent to 23.8 percent, and the top integrated
rate currently sits at 56.3 percent compared to the OECD/BRIC average of 40.3 percent.
While it appears unlikely that incoming lawmakers and the administration will increase rates outright, they should also be sure not to incrementally move the needle toward higher capital gains taxes in other ways, like boosting taxes on carried interest capital gains.
Carried interest capital gains income is earned through a net gain within a partnership formed between individuals with capital and an expert investor. They are indistinguishable from any other type of capital and so they are paid at the same capital gains tax rates.
While supporters of higher taxes on carried interest capital gains say it takes aim at 'hedge fund guys,' it would also hurt pension funds, charities, and colleges that depend on these investment partnerships as part of their savings goals. In addition, small businesses, innovators, and inventors would find themselves increasingly shut out from investment money available to them from these partnerships.
Rather than supporting proposals that lead to higher capital gains tax rates, the incoming Congress and administration should look toward lower rates. One model to follow is contained in the House GOP blueprint, which reduces the top rate on capital gains to 16.5 percent.
Today, pro-growth tax reform is needed more than ever. It is imperative that lawmakers prioritize an overhaul of the tax code as well as protect the areas of the current tax code that promote innovation, investment, and growth.
President, Americans for Tax Reform
President, National Taxpayers Union and Foundation
Chairman, 60 Plus Association
Vice President for Policy, Campaign for Liberty
Co-Director, Inventors Project
President, Market Institute
Chairman, Constitutional Rights PAC
Chairman, Conservative Action Fund
President, Reaching America
President, American Commitment
President, American Business Defense Council
President and CEO, Freedomworks
President, Center for Individual Freedom
Colonel Rob Maness Chairman, Gator PAC
President, Frontiers of Freedom
President, The Institute for Liberty
Founder, Tea Party Nation
Paul Morinville Chairman, US Inventors
Andrew F. Quinlan
President, Center for Freedom and Prosperity
Louis Foreman President, Edison Nation
Richard A. Viguerie Chairman, Conservative HQ
President, San Diego Inventors Forum
Founder, Independent Inventors of America
Vice President, Competitive Enterprise Institute
Dee Hodges, President Maryland Taxpayers Association
President, Taxpayers Protection Alliance
Founder and Principal, Able Americans
CEO, Association of Mature American Citizens
President, Hispanic Leadership Fund
Gregory T. Angelo
President, Log Cabin Republicans
Willes K. Lee
President, National Federation of Republican Assemblies