Ending Wall Street Tax Giveaway Act

Ending Wall Street Tax Giveaway Act

This bill modifies the tax treatment of carried interest, which is compensation that is typically received by a partner of a private equity or hedge fund and is based on a share of the fund's profits. (Under current law, carried interest is taxed as investment income rather than at ordinary income tax rates.)

This bill includes provisions that

• set forth a special rule for the inclusion in gross income of partnership interests transferred in connection with the performance of services,
• treat as ordinary income the net capital gain with respect to an investment services partnership interest except to the extent such gain is attributable to a partner's qualified capital interest,
• exempt income from investment services partnership interests from treatment as qualifying income of a publicly traded partnership,
• exempt certain family partnerships from the application of this bill,
• increase the penalty for underpayments of tax resulting from failure to treat income from an investment services partnership interest as ordinary income, and
• include income and loss from an investment services partnership interest for purposes of determining net earnings from self-employment and applicable self-employment taxes.

The bill defines investment services partnership interest as any interest in a partnership held by a person who provides services to a partnership by (1) advising the partnership about investing in, purchasing, or selling specified assets; (2) managing, acquiring, or disposing of specified assets; or (3) arranging financing with respect to acquiring specified assets.

Bill 118 hr 2686, also known as the Ending Wall Street Tax Giveaway Act, is a piece of legislation introduced in the US Congress. The main goal of this bill is to close tax loopholes that benefit Wall Street financial institutions.

The bill aims to address the issue of financial institutions receiving tax breaks and other benefits that are not available to other industries. By closing these loopholes, the government hopes to create a more level playing field for all businesses and ensure that Wall Street pays its fair share of taxes.

Specifically, the Ending Wall Street Tax Giveaway Act proposes to eliminate certain tax deductions and credits that are currently available to financial institutions. These deductions and credits have been criticized for allowing Wall Street firms to reduce their tax liability significantly, while other industries do not have access to the same benefits. In addition to closing tax loopholes, the bill also includes provisions to increase transparency and accountability in the financial industry. This includes requiring financial institutions to disclose more information about their tax practices and ensuring that they are held accountable for any tax evasion or fraud. Overall, the Ending Wall Street Tax Giveaway Act is aimed at promoting fairness and equity in the tax system, particularly for Wall Street financial institutions. It seeks to ensure that all businesses pay their fair share of taxes and that the financial industry is held to the same standards as other industries.