For the full text of this press release in PDF format, please click here: ATNJ supports Congressman Pascrell-sponsored legislation addressing “carried interest”
For Immediate Release:
ATNJ supports Congressman Pascrell-sponsored legislation addressing “carried interest”
MADISON, NJ, April 29, 2019 – On March 13th, New Jersey Congressman Bill Pascrell (D-NJ-09) introduced legislation (H.R. 1735) in the House of Representatives to address a lucrative tax break enjoyed by investment managers on Wall Street, the carried interest tax provision. Investment managers at private equity firms, venture capital firms, and hedge funds typically take a 2% fee, based on assets under management, and an additional 20% from their investors, of all profits generated through investment activities. Under the current tax code, the 20% taken on profits, known as carried interest, is treated as a long-term capital gain and taxed at a rate of 23.8%. (Long-term capital gains taxes are levied on profits from the sale of an asset held for more than three years at rates much lower than ordinary income tax rates.) As a result, Wall Street bankers and executives pay considerably less in taxes than other Americans. In order to address this unfair tax provision, Action Together New Jersey (ATNJ) proudly supports Congressman Pascrell’s Carried Interest Fairness Act of 2019 and will work to generate support from other Members of Congress until this legislation is signed into law.
Although President Donald Trump and Republicans publicly supported proposals to close the tax loophole, when given the chance with the Tax Cuts and Jobs Act, both failed to include the provision, handing Wall Street yet another opportunity to take advantage of a skewed tax code. Combined with efforts by Republicans to de-regulate the financial sector and remove oversight functions, the lack of political will to address the inequities of these provisions has led to greater gaps between the wealthiest in our nation and struggling working families. New Jerseyans continue to grapple with rising health care expenses, rising costs of living, and pension uncertainty while paying their fair share of taxes. However, those at the highest wealth levels have identified and exploited this loophole, greedily avoiding taxes and using their political ties to lobby for additional tax cuts at the expense of an eroding middle class that already subsidizes wealthier Americans’ tax liabilities.
Action Together New Jersey calls on its members to contact their respective representatives, asking for swift co-sponsorship of H.R. 1735. Our members overwhelmingly supported progressive Democrats during the mid-terms, playing a crucial role in turning the House of Representatives blue and flipping three seats in New Jersey. We call on our elected officials to use their platforms and deliver economic justice to the people of the state while simultaneously closing the loopholes in our system that perpetually allow working families to fall behind.
Economic Policy Director Action Together New Jersey
Nhu-Uyen “Winn” Khuong
Action Together New Jersey
About Action Together New Jersey
ATNJ, a non-profit progressive group, is the largest grassroots organization in New Jersey. ATNJ has chapters in every county, because change is local. Functioning as a central command for statewide initiatives and legislative actions, ATNJ’s teams work with coalitions of like-minded groups to serve the public by educating the electorate, providing a platform for progressive candidates, advancing legislative proposals with elected officials, and working in concert with advocacy groups for human rights. ATNJ seeks to promote equality and progressive ideals and to secure a more inclusive, fair and equitable future for New Jersey and the nation. For more information, visit www.ATNJ.org.