ADVERTISEMENT Currently, there is a loophole in our tax code that allows investment managers to pay less taxes for wage income than the ordinary West Virginian and American worker. This legislation would close this loophole to ensure wealthy hedge fund managers are paying the fair amount in taxes, Manchin said in a statement. I urge my colleagues on both sides of the aisle to support this commonsense legislation that treats all workers fairly.”
The introduction of the bill comes after Biden proposed in his American Families Plan to do away with the carried-interest preference. Biden also proposed raising both the top ordinary income tax rate and the top capital gains rate to 39.6 percent for high-income taxpayers. Biden is proposing to use the revenue raised from these tax increases to pay for spending in areas such as child care and education.