The Taxation of Private Equity Carried Interests: Estimating the Revenue Effects of Taxing Profit Interests as Ordinary Income
- 7 November 2008
- preprint
- Published by Elsevier BV in SSRN Electronic Journal
Abstract
In this Article, I estimate the tax revenue effects of taxing private equity carried interests as ordinary income rather than as long-term capital gain as under current law. Under reasonable assumptions, I conclude that the expected present value of additional tax collections would be between 1 percent and 1.5 percent of capital invested in private equity funds, or between $2 billion and $3 billion a year. That estimate, however, makes no allowance for changes in the structure of such funds or the composition of the partnerships, which might substantially reduce tax revenues below those estimates.Keywords
This publication has 3 references indexed in Scilit:
- TAXATION ON WEALTHPublished by World Scientific Pub Co Pte Ltd ,2018
- Price, Sir Norman (Charles), (5 Jan. 1915–19 Feb. 2007), Member, European Court of Auditors, 1977–83; Chairman, Board of Inland Revenue, 1973–76 (Deputy Chairman, 1968–73)Published by Oxford University Press (OUP) ,2007
- China's Foreign Policy and 'Soft Power' in South America, Asia, and Africa: A Study. 110th Cong., 2nd sess., April 2008Published by Brill ,1970