Carried Interest Fairness Act of 2025

This bill would change how investment fund managers are taxed on a type of income called "carried interest," which is the share of profits they earn from managing other people's investments. Right now, that income is taxed at the lower rates that apply to investment gains, but this bill would tax it at the higher rates that apply to regular income like wages. The bill would also make sure this higher tax rate applies when a fund manager sells or trades their carried interest, and it would require carried interest income to be subject to self-employment taxes as well. Some exceptions to these rules would apply.

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