WASHINGTON - Ways and Means Ranking Member Sander Levin (D-MI) today issued the following statement after Gov. Mitt Romney disclosed that he received $13 million in “carried interest" in 2010 and 2011, compensation that was taxed at the 15 percent capital gains rate rather than at ordinary income tax rates up to 35 percent that most Americans pay. Rep. Levin has twice introduced legislation to tax carried interest income at ordinary rates - a measure that has passed the House four times as part of broader legislation. He will soon reintroduce legislation to fix this loophole. A full timeline is provided below.
LEVIN: “The fact that one of the leading Republican presidential candidates benefited to such a significant extent from this egregious loophole only further illustrates the need to address this issue once and for all. Regardless of whether compensation is earned for managing investments of other people’s money or providing other types of services, it should be taxed at the same rates paid by everyone else in the U.S. Americans expect fairness in our tax code and getting rid of this loophole is a significant step in the right direction."
Timeline of Action on Carried Interest Legislation:
June 22, 2007 - Rep. Levin introduces H.R. 2834 to treat carried interest as ordinary income. Original co-sponsors include Ways & Means Chairman Rangel and Financial Services Chairman Frank.
Nov. 9, 2007 - The House of Representatives approves carried interest legislation as part of H.R. 3996, which included tax extenders, an AMT “patch" and other provisions.
June 22, 2008 - The House of Representatives approves carried interest legislation as part of H.R. 6275, the Alternative Minimum Tax Relief Act of 2008.
April 2, 2009 - Rep. Levin reintroduces legislation to treat carried interest as ordinary income (H.R. 1935) for the 111th Congress.
Dec. 9, 2009 - The House of Representatives approves carried interest legislation as part of H.R. 4213, which extended various expiring tax provisions.
May 28, 2010 - The House of Representatives approves carried interest legislation as part of amendments to the Senate-passed version of H.R. 4213.
2012 - Rep. Levin to reintroduce carried interest legislation.
