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Tell Congress: Stop hedge fund tax dodging

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Petition to Congress:

"Close the carried interest loophole that allows hedge fund managers to dodge billions in taxes by passing the Carried Interest Fairness Tax Act."

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    Tell Congress: Stop hedge fund tax dodging

    Hedge fund managers hurt the real economy, lose money for their clients, fund right-wing causes – and Congress is letting them dodge taxes, too.1,2,3

    The carried interest loophole has helped hedge funds dodge at least $18 billion in taxes, and possibly far more. It’s nothing more than a financial trick to pretend money from clients is actually profit selling investments – called capital gains – that is taxed at a lower rate.4

    Hedge fund tax dodging is a perfect example of how the rules are rigged against ordinary Americans. Progressive champions Sens. Elizabeth Warren and Tammy Baldwin are pushing a simple bill to end the carried interest loophole.x We need to get behind this bill in a big way – shining a spotlight on those who side with hedge funds over regular taxpayers.

    Tell Congress: Stop hedge fund tax dodging.

    We are teaming up with Sen. Warren, and our allies in the progressive movement, to push an ambitious agenda to end big banks’ hold on our economy and democracy. For years, CREDO members have been fighting for tax fairness, to break up the big banks, and alternatives like postal banking. As the Obama years draw to a close, it’s time to recommit to an aggressive agenda to finish the job of Wall Street reform – starting with closing the carried interest loophole.

    Just the top 25 hedge fund managers sucked up $12.94 billion in 2015 alone, 50 percent more than all of America’s kindergarten teachers earn each year.6 It’s bad enough that the hard-working people who care for our children and prepare them for the future make so much less than a handful of people moving money around. There’s no reason in the world to allow hedge fund managers a special tax break.

    Thousands of CREDO members have already asked President Obama to direct the Treasury Department to close the carried interest loophole, but that doesn’t mean that we can let Congress off the hook. The simplest and easiest way to end hedge fund tax dodging is for Republicans and corporate Democrats to stop protecting Wall Street and close the carried interest loophole.

    Tell Congress: Stop hedge fund tax dodging.

    Money from buying investments low and selling high, called capital gains, is taxed at a lower rate than normal income. All the Treasury Department needs to do is use its existing authority to call hedge fund managers “service providers,” and issue new rules under the tax code.7 Then hedge fund managers won’t be able to pretend that the management fees they charge clients are actually capital gains. With the one percent choking off growth by hoarding massive sums of wealth, it’s long past time for Congress to listen to the experts and act.

    Tell Congress: Stop hedge fund tax dodging.

    Thank you for speaking out.

    1. Matthew Yglesias, “25 hedge fund managers earned more last year than every kindergarten teacher in America,” Vox.com, May 10, 2016.
    2. David Dayen, “What Good Are Hedge Funds?” The American Prospect, April 25, 2016.
    3. Hedge Clippers, “HedgeClippers.org.”
    4. Gretchen Morgenson, “Ending Tax Break for Ultrawealthy May Not Take Act of Congress,” The New York Times, May 8, 2016.
    5. Baldwin, Levin Introduce Bill to Close Carried Interest Loophole,” Ways and Means Democrats, June 25, 2015.
    6. Yglesias, “25 hedge fund managers earned more last year than every kindergarten teacher in America.”
    7. Potential Executive Actions to Close Tax Loopholes,” Budget.Senate.gov, Retrieved April 6, 2015.