January, 16 2018, 01:15pm EDT
Patriotic Millionaires On Carried Interest Provision: No More Freeloading Millionaires
By eliminating it, Governor Cuomo is leading the nation in restoring fairness to our tax code.
WASHINGTON
This afternoon, following New York Governor' Andrew Cuomo's announcement that the 2018 New York state budget will include a provision that would close the carried interest tax loophole, the Chair of the Patriotic Millionaires Morris Pearl, former Managing Director at BlackRock, Inc., issued the following statement:
"The carried interest loophole has allowed millionaire fund managers to avoid taxes for far too long. This budget would demand that they pay the the same tax rate on their income that working people pay, raising billions of dollars in tax revenue for the state of New York and restoring a sense of fairness to our tax code at the same time.
It sends a powerful message that the rest of the country should take notice of: no more freeloading millionaires. The richest Americans, those who have benefited the most from what this country and the state of New York have to offer, must contribute their fair share.
The carried interest loophole - a fundamental mischaracterization of income that allows for some asset managers to pay a tax rate that is half what every other working American pays - is the poster child for money overcoming logic and decency in our public policy process. This loophole benefits a few thousand of the richest Americans, and allows them to pretend that their labor income is actually investment income, while offering absolutely no economic benefit to anyone else. By closing this loophole, Governor Cuomo is showing that government is capable of working for the people, not just a wealthy few."
To schedule an interview or for further comment, please contact Sasha Grodsky at sasha@patrioticmillionaires.org
The Patriotic Millionaires is a group of high-net worth Americans who share a profound concern about the destabilizing level of inequality in America. Our work centers on the two things that matter most in a capitalist democracy: power and money. Our goal is to ensure that the country's political economy is structured to meet the needs of regular Americans, rather than just millionaires. We focus on three "first" principles: a highly progressive tax system, a livable minimum wage, and equal political representation for all citizens.
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