Edwards Statement On Carried Interest

Chapel Hill, North Carolina – Senator John Edwards released the following statement as the Senate Finance Committee holds a hearing today to consider changing the way hedge fund and private equity fund managers are taxed:

"You want to know what I mean by Two Americas? A tax code that lets hedge fund and private equity managers making hundreds of millions a year pay taxes at a lower rate than their secretaries is wrong. Building One America means getting rid of loopholes like the one that lets these investment advisers treat most of their compensation as capital gains. Carried interest is compensation for work, and it should be taxed like other pay.

"I applaud Representatives Rangel and Levin for introducing legislation to end this abuse. These leaders are not just talking about economic fairness - they're trying to do something about it. And I congratulate Senators Baucus and Grassley for introducing a bill to close another loophole that lets publicly-traded hedge funds and private equity funds avoid corporate taxes."