The State Capitol, Albany NY.
ALBANY – A group of millionaires is on board with higher taxes on the rich.
Patriotic Millionaires, a group of self-described high-net-worth Americans, is backing a proposal in Albany that would close the so-called carried interest loophole.
The state-specific proposal calls for a higher tax rate for those who benefit from carried interest to make up the difference between the tax rate on wages and the tax rate on gains. To maintain geographic competitiveness, such a rate would be enacted in concert with other states in the Northeast and elsewhere.
Carried interest is a performance fee (usually 20 percent) that money managers collect on gains from their funds above a certain amount. Advocates and lawmakers say the problem is that the tax rate on the carried interest is 20 percent – far lower than the ordinary income tax rate, which is 39.6 percent.
That proposal, which has been criticized by Albany Republicans and has been met with a cool response from Gov. Andrew Cuomo, is supported by the Patriotic Millionaires. Three of the 200 members of the group are New Yorkers, and two of them were in Albany on Monday to show support for the legislation.
Bill language was to be introduced in Albany on Monday, with plans to have legislation introduced in other states soon after lawmakers elsewhere seen the New York bill.
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