VIDEO: What Is Carried Interest?

Feb 7, 2013

President Obama and some Democrats in Congress are signaling their renewed interest in raising taxes on carried interest, which is profit on the sale of a long-term capital asset. Carried interest is appropriately taxed as a capital gain as opposed to ordinary income, thus encouraging the risk taking that is required to save, start, and grow companies. Changing the taxation of carried interest would upend the private equity business model – a model that is responsible for pumping hundreds of billions of dollars into the U.S. economy each year, while strengthening businesses for the long-term.

This educational whiteboard video by the Private Equity Growth Capital Council answers questions about what carried interest really is, how it works, and why it’s appropriately taxed at the capital gains rate.

Subscribe for Updates

Email:
First Name:
Last Name:
Frequency
 Daily   Weekly

Trending Now

This Infographic Shows What Atypical Jobs Pay College Grads Well and What Cities are Affordable

1,624 views

Citing Economic Benefits, Report Ranks U.S. Cities by Walkability

1,585 views

From Under Armour in Baltimore to Quicken Loans in Detroit, Businesses Lead Urban Revitalization Efforts Across the U.S.

1,303 views
The Challenge Cup: Follow the Global Tournament

Join the Discussion