A large coalition of national real estate groups, (including ICSC, BOMA, NAIOP, CCIM among others), are strongly urging Congress and White House negotiators to drop the notion of using the Carried Interest Tax Hike as part of the final deal. From the press release:
“The undersigned real estate organizations urge Congress to reject an increase in taxes on partnership carried interest that would encumber job creation and halt economic recovery. In an attempt to help close the budget deficit, lawmakers are considering treating carried interest as ordinary income (taxed at up to 35 percent) rather than as capital gain (subject to a top rate of 15 percent).”
“Such an increase could derail a real estate recovery by disproportionately impacting small to medium sized real estate partnerships that rely on carried interest to make up for the substantial risks and liabilities associated with long-term real estate ownership and development.”
The August 2 deadline to raise the debt ceiling is fast approaching and House Republicans and the Obama Administration have yet to make much progress in reaching a final agreement. The White House and Congressional Democrats continue to argue in favor of spending cuts and closing various tax “loopholes” in a final deal, which may include carried interest.
Thank you to all members that have called your members of Congress to educate them on the devastating impacts the Carries Interest Tax Hike would have on our already struggling industry.
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