Grover Norquist Is Open To Eliminating The Carried Interest Loophole
Getty Images
NATIONAL HARBOR, Md. - Grover Norquist, one of the prime architects of conservative tax policy in the U.S., signaled he is open to killing the so-called "carried interest" tax loophole in an interview with Business Insider Friday.
"I'm insufficiently focused on that as a specific thing," Norquist, the founder and president of the powerful Americans for Tax Reform, said when we asked about carried interest at the Conservative Political Action Conference. "I would object to changing it standalone - because then it's just a tax increase - or as part of a net tax increase. But as part of a revenue-neutral tax proposal, it's less problematic."
The carried-interest loophole is a benefit in the tax code that allows certain hedge fund and private equity profits to be taxed at a lower rate. Norquist supported the tax reform proposal offered by Republican House Ways and Means Committee Chairman Rep. Dave Camp last week, which was revenue neutral and included a plan to eliminate carried interest. However, Camp's plan was opposed by members of Congress from both parties and has little chance of becoming law.
The elimination of carried interest was one of the only elements Camp's proposal shared with the budget President Barack Obama budget released Tuesday. When Camp's plan was first announced, it sparked rumors of a "revolt" on Wall Street with financial industry donors abandoning Republicans as a result of Camp's proposal.
Norquist's organization is famous for sponsoring the "Taxpayer Protection Pledge," which has been signed by all but 13 sitting congressional Republicans. The pledge serves as a promise, in writing, that candidates will oppose all tax increases while in office. Norquist suggested killing the carried-interest loophole wouldn't force lawmakers to break the pledge.
"It might be something we'd still oppose" after further study, he told Business Insider, "but it's not a violation of the pledge."
Norquist described Camp's plan as a good start to a larger discussion on tax reform. He said the proposal helped draw contrast between Republicans who propose revenue-neutral tax code simplification and Democrats that back standalone tax increases.
Norquist said Camp's plan was also important because it also included a dynamic - not static - estimate from the Joint Committee on Taxation, something with the potential to alter how tax-reform legislation is scored in the future.
"Dynamic scoring" assumes any changes individuals and businesses pursue in response to a change in tax policy could significantly affect economic growth.
"That's a huge win. Huge, huge win," Norquist said. "That's why I think the bill is great - it's not a tax increase, it's scored dynamically. And it's not going anywhere, but it serves as a discussion point - because Democrats won't pass anything that's not a tax increase."
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market