Center for Freedom and Prosperity Foundation
For Immediate Release
Tuesday, November 10, 2015
New “Economics 101” Video from CF&P Tackles
the Tax Treatment of Carried Interest
(Washington, D.C., Tuesday, November 10, 2015) The Center for Freedom and Prosperity Foundation (CF&P) released today an “Economics 101” video demystifying the issue of “How Should Carried Interest be Treated by the Tax Code.”
Narrated by Miriam Roff of Americans for Tax Reform, the mini-documentary explains why efforts to tax carried interest as ordinary income instead of capital gains are fundamentally misguided. Using simple and clear examples of business partnerships, the video makes the case why a capital gain doesn’t magically turn into labor income simply because investors share a portion with fund managers.
Link to the video: https://youtu.be/rGR7l9jRdF8
“Populist appeals and the spread economic misinformation will continue to increase as we get closer to the next election,” said CF&P Foundation President Andrew Quinlan. He added, “This video cuts through the campaign fog to put the policy focus on what is actually most fair and efficient, instead of what scares up the most votes.”
Dan Mitchell of the Cato Institute said, “There shouldn’t be any capital gains tax since it’s a form of double taxation, so it’s unfortunate that some people want higher tax rates on capital gains and are distorting the issue of carried interest in hopes of getting the camel’s nose under the tent.”
Americans for Tax Reform President Grover Norquist said, “The Left is constantly trying to tax ALL capital gains as ordinary income. This unserious attack on carried interest capital gains is just the beginning of their plan.”
This mini-documentary from the Center for Freedom and Prosperity Foundation explains how carried interest works, and settles the debate over its treatment by the tax code.
This new video is part of CF&P’s Economics 101 video series, which is designed to explain free market concepts, with particular emphasis on reaching students and young people. This is the twenty-fourth video in the series. Videos in the series have been viewed over 750,000 times.