Talk:Carried interest

Mitt Romney's carried interest

I fixed a statement that said that the bulk of Mitt Romney's income was carried interest, since the article it linked to actually reported that $13M of $42M in 2010 and 2011 was carried interest. That is not the bulk, it is 31%. — Preceding unsigned comment added by 38.122.6.166 (talk) 20:46, 15 March 2012 (UTC)

General

If find the following statement to be a misleading subjective opinion, "As a practical matter, it is a form of performance fee that rewards the manager for enhancing performance." If you take that concept further, then you would say all capital gains are "performance" income based on the investor's "performance". — Preceding unsigned comment added by 67.249.246.183 (talk) 12:37, 21 September 2015 (UTC)

And it would be true that all capital gains are performance income based on the investor's performance. However, in this case the manager is working for others, so it's especially appropriate to see carried interest as analogous to other cases where someone gains for his performance to others. Crcarlin (talk) 19:54, 27 September 2015 (UTC)

I don't have a real opinion on whether the statement is subjective or not, but it is a "common-language summery" of what carried interest is (or perhaps, "might be" - I don't know). Given that Wikipedia is for a general audience, some kind of "summary sentence" like this seems appropriate/needed. Perhaps removing the "that rewards the manager.." part, or change it to "which is meant to reward.." That is, if there is some source saying that - perhaps in an original document when the modern taxation law was written. Jimw338 (talk) 18:20, 10 October 2016 (UTC)

More analysis?

The section on taxation in the US is very heavy on legislative activity, both in terms of an exhaustive timeline of legislation and detailed overview of legislative lobbying. It's light on perspectives coming from outside the halls of Congress.

I think it could use more citations of outside experts--economists and financial experts--laying out pros and cons of both carried interest pay and favorable taxation. Crcarlin (talk) 20:00, 27 September 2015 (UTC)

No wonder Hillary's campaign chest fills up every time Trump mentions closing down the carried interest provision. 2601:181:8301:4510:ECC2:8220:737:3A86 (talk) 20:16, 10 October 2016 (UTC)

External links modified

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• Added archive https://web.archive.org/web/20120128080632/http://www.taxpolicycenter.org/taxtopics/2010_budget_carriedinterest.cfm to http://www.taxpolicycenter.org/taxtopics/2010_budget_carriedinterest.cfm
• Added archive https://web.archive.org/web/20120129192512/http://www.taxpolicycenter.org/taxtopics/2011_carried_interest.cfm to http://www.taxpolicycenter.org/taxtopics/2011_carried_interest.cfm
• Added archive https://web.archive.org/web/20120129071857/http://www.taxpolicycenter.org/taxtopics/Tax-Carried-Interest-as-Ordinary-Income.cfm to http://taxpolicycenter.org/taxtopics/Tax-Carried-Interest-as-Ordinary-Income.cfm
• Added archive https://web.archive.org/web/20151121112003/http://democrats.waysandmeans.house.gov:80/press-release/baldwin-levin-introduce-bill-close-carried-interest-loophole to http://democrats.waysandmeans.house.gov/press-release/baldwin-levin-introduce-bill-close-carried-interest-loophole
• Corrected formatting/usage for http://www.usatoday.com/story/news/politics/elections/2016/06/15/hillary-clinton-donald-trump-economy/85928334/
• Added archive https://web.archive.org/web/20090320131347/http://www.hmrc.gov.uk/shareschemes/bvca_and_fb2003_carried_interest.pdf to http://www.hmrc.gov.uk/shareschemes/bvca_and_fb2003_carried_interest.pdf
• Added archive https://web.archive.org/web/20090320131344/http://www.hmrc.gov.uk/pbr2007/pbrn17.pdf to http://www.hmrc.gov.uk/pbr2007/pbrn17.pdf
• Added archive https://web.archive.org/web/20120127184333/http://www.taxpolicycenter.org:80/briefing-book/key-elements/business/carried-interest-reform.cfm to http://www.taxpolicycenter.org/briefing-book/key-elements/business/carried-interest-reform.cfm

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"Contributes"

I think using "contributes" to refer to the investment manager's initial contributions is misleading in this context (though it is the term of art in law/finance). If no one has an objection, I'm going to replace that language throughout with "initially pays in," which I think better highlights that this is just the $ contribution (not also the "sweat equity"). Also, I think "contributes" has a positive connotation and "initially pays in" has a neutral connotation-- which I think is another reason for the change, but since it changes the tone, just want to flag it first. Heliopolisfirebirdii (talk) 13:49, 4 July 2020 (UTC)

Distribution Waterfall Diagram

I think a diagram of the distribution waterfall would be helpful, but at a quick search, I couldn't find any that were a) professional looking and b) public domain. If anyone knows of a good one, please add it! It's much easier to understand visually. Heliopolisfirebirdii (talk) 18:23, 4 July 2020 (UTC)

Tax advantage

I think the sentence in the intro (and body) "Some believe that the structure [carried interest] also takes advantage of favorable tax treatment in the United States." is misleading. It is not an opinion, it is a fact that carried interest has favorable tax treatment. I would like to modify this to suit if there is no objection. Please give opinions. Thanks. Zaslav (talk) 08:16, 29 July 2022 (UTC)