Trustee Election
These are the original issues in this subcategory
  • PRIVATE EQUITY FUNDS
  • FINANCIAL TRANSACTION TAX
  • CORPORATE WELFARE
Winning Issue » PRIVATE EQUITY FUNDS


Private equity funds are private investment vehicles used to pool investment capital that is usually provided by a small group of limited partners. Critics claim the managers of these investment pools buy targeted companies, cut some jobs and offshore others, pile on debt and walk away with huge profits that are hardly taxed. Supporters claim these funds create jobs and value which benefit many pension funds, university endowments and other investment pools that serve ordinary people. They say that some equity funds make long-term investments in the firms they buy to produce better, more efficient companies. Equity funds are subject to favorable regulatory treatment in most jurisdictions from which they are managed and this allows them to minimize the tax burden on their investors and managers. The income from private equity funds is considered and taxed as a capital gain rather than as normal income. The maximum tax rate for capital gains is 20%, compared to the 39.6% marginal income tax rate that an average person must pay. Critics say private equity managers are using a loophole to avoid paying their fair taxes on what is actually a salary. They claim this is costing our Treasury many millions each year. Equity fund supporters say that altering the tax treatment of a single industry raises tax policy concerns, and that changing the way partnerships in general are taxed is something that should only be done after careful consideration of the potential impact.


Pending Legislation: None




Options


  • I oppose reforming private equity fund taxation policy, and also wish to donate resources to the campaign committee of either Rep. Paul Ryan or Sen. Mitch McConnell
  • I support private equity fund managers paying marginal income tax rates rather than capital gains tax rates on their income, and wish to either reintroduce H.R.1935 - To amend the Internal Revenue Code of 1986 to provide for the treatment of partnership interests held by partners providing services (111th Congress 2009-2010), or a similar version thereof, and also wish to donate resources to the campaign committee of Sen. Carl Levin (MI) or to an advocate group currently working with this issue


Winning Option
  • I support private equity fund managers paying marginal income tax rates rather than capital gains tax rates on their income, and wish to either reintroduce H.R.1935 - To amend the Internal Revenue Code of 1986 to provide for the treatment of partnership interests held by partners providing services (111th Congress 2009-2010), or a similar version thereof, and also wish to donate resources to the campaign committee of Sen. Carl Levin (MI) or to an advocate group currently working with this issue
There has been $0.00 pledged in support of this issue
Trustee Candidates

If elected as a trustee, the campaign committee of Sen. Carl Levin (MI) will be unconditionally awarded the funds pledged to this issue along with a letter requesting him to favorably consider either reintroducing H.R.1935 - To amend the Internal Revenue Code of 1986 to provide for the treatment of partnership interests held by partners providing services (111th Congress 2009-2010), or a similar version thereof.

If elected as a trustee, CTJ will be awarded the funds pledged to this issue along with a letter requesting these funds be used to advocate for taxing the income of private equity fund managers at marginal rates rather than the capital gains tax rate.

Citizens for Tax Justice, founded in 1979, is a 501(c)(4) public interest research and advocacy organization focusing on federal, state and local tax policies and their impact upon our nation. CTJ’s mission is to give ordinary people a greater voice in the development of tax laws. Against the armies of special interest lobbyists for corporations and the wealthy, CTJ fights for tax fairness for middle and low-income families, requiring the wealthy to pay their fair share, closing corporate tax loopholes, adequately funding important government services and reducing the federal debt. CTJ presents lawmakers with proposals to raise revenue by closing loopholes in federal personal and corporate income tax laws, and in social insurance taxes in order to enhance fairness and fund public investments that might otherwise be subject to cuts. CTJ explains to lawmakers how well-known companies like General Electric, Boeing, Facebook, and many others, avoid taxes, and it recommends the type of loophole-closing reforms that will raise revenue from corporate tax avoiders and prevent their use of offshore tax havens.
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Trustee Election - Opening Date
February 27, 2020
Trustee Election - Closing Date
March 4, 2020