New York (HedgeCo.net) – With all the political rhetoric from the Democratic Party, you knew it was coming. On Thursday, Senator Tammy Baldwin, D-Wis. and House Ways and Means Committee ranking member Sander Levin, D-Mich, introduced legislation that would end the carried interest benefit for hedge fund managers, venture capitalists and private equity partners.

The legislation that was introduced is the Carried Interest Fairness Act of 2015. If it is approved, income earned managing other people’s money would be taxed under the current income tax rates rather than at the capital gains tax rate as it is now.

Similar legislation has been introduced on numerous occasions over the last five years, but none of the proposals have ever made it very far. With Republicans controlling both the House and the Senate, this legislation doesn’t seem destined for passage.

Rick Pendergraft
Research Analyst
HedgeCoVest