Carried interest
Carried Interest (short form: Carry ) (literally translated 'transferred interest income', better translated 'profit sharing') is a profit sharing for the manager of an investment at the expense of the investors.
Usually, the managers receive a percentage of the profit from the capital employed ( English capital gain ) that they have earned through their work. The purpose is to create an incentive to achieve the highest possible profit. In December 2017, the New York Times put the profit share that is usually distributed to managers at around 20%.
Tax loophole in the US
A legal loophole in US tax law has come to be known as the carried interest ' loophole ' that allows some wealthy business people to pay less tax than their employees. Since only capital gains tax of up to 20% (as of 12/2017) is payable on the "carried interest", whereas on ordinary income in the USA there is an income tax of up to 39.6% top tax rate , occupational groups whose income is largely derived from " Carried Interest consists of a large part of income tax.
US President Donald Trump had promised to close this loophole in the course of his 2015/2016 candidacy, but, according to observers, failed in 2017 due to massive lobbying by the financial industry. This had successfully won several MPs and Treasury Secretary Steven Mnuchin on their side by emphasizing the alleged use of the low "carried interest" taxation for long-term investments in the US economy and thus for the preservation of jobs.
Individual evidence
- ↑ a b c Alan Rappeport: Trump Promised to Kill Carried Interest. Lobbyists Kept it Alive. In: New York Times. December 22, 2017, accessed April 14, 2018 .
Web links
- Carried interest in the business lexicon & stock exchange lexicon on boersennews.de
- Carried interest on boersen-lexikon.net