My job in Private Equity was to implement legal structures specifically to exploit the Carried Interest tax loophole. (I did not know what I was getting into when I took the job.)
My old boss, Leon Black, was taxed at around 17% despite being worth $3.5 Billion and despite earning hundreds of millions of dollars a year. It really is one of the most ridiculous features of our tax code and it needs to come to an end.
Private Equity does not contribute to our economy in any way. All they really do is buy corporations off the stock market, extract as much money as they can, and then sell it back to the public markets or sell it to a differ PE firm. Most of the time it’s destructive as jobs are lost or degraded and otherwise viable corporations are pushed into bankruptcy.
PE bosses like to threaten to pack their bags and go elsewhere if the tax code is changed. I say let them go. Our economy would be better without them.