Carried Interest Fairness Act of 2025

Right now, managers at private equity firms and hedge funds often receive a share of their fund's profits, called "carried interest," which gets taxed at the lower tax rate that applies to investment gains rather than the higher rate that applies to regular income like wages. This bill would change that by treating carried interest as regular income, so it would be taxed at the higher ordinary income tax rates instead. The bill would also apply this higher tax rate when a partner sells their carried interest or receives it as a distribution from the fund, with some exceptions. Additionally, the bill would require that carried interest income be subject to self-employment taxes.

Your Vote