Really an interessting article. One wonders who made this loophole possible and when. It can only have happened in the Bush era, remember "deregulation" aka creating such loopholes for their clientel...
The article isn't fully true. Carried interest is taxed at the same rate the income is derived. So it's not always long term gains. For most private equity it is because they have long term holdin periods, but most hedgefunds trade short term as this are subject to short term capital gains. I still think its a stupid loophole.