The carried interest loophole is under attack by demoncrats and other assorted freegans http://pbhfa.org/new-york-challenges-carried-interest-loophole/
It's been under attack for years by a number of people, including none other than the illustrious Mr. Trump. Is he a demoncrat, assorted freegan, or the current republican front runner? (http://www.nytimes.com/2015/09/18/b...interest-tax-loophole-is-vulnerable.html?_r=0) Love the loohole, but can't deny it is exactly that, a loophole. Unlike some really bad ideas, like a transaction tax, I don't think it's going to change behavior if it's closed. I'm pretty sure all my friends on the buy side aren't going to abandon their jobs and go work as garbage men (or even worse go back to the sell side) if carried interest goes away. And I'm certain the 50 aspiring MBA's applying for each open PE/VC associate slot aren't going to pull their applications. Curious what your take is on the intended or unintended consequences of this will be other than making fund managers a little less wealthy?
You make excellent points, thanks! I see it taking away incentive-- however, that can't be measured like a transaction tax. surf
Billion $ payday's will be much harder to come by and this would not only impact hedgies but also oil and gas and other industries that use MLPs...