I don’t begrudge Romney for only paying 15%. He invested well.
I am 100% against the income tax. It needs to be abolished.
THE "CARRY"
Carlyle Group, Bain Capital, And The Tax Treatment Of 'The Carry' ......."That story is much more complicated than Romney’s opponents suggest. Nonetheless, it has lots of people thinking about what private equity does.
Also this week, Carlyle disclosed its executive compensation in some detail, providing a rare glimpse into how investment firm managers are paid. Combined with the Bain flap, it will surely reopen the five-year old debate over the special tax treatment these partnerships receive through a mechanism known as carried interest or, in short, “the carry.”
The carry allows general partners in investment deals to receive compensation in the form of tax-advantaged capital gains, which are taxed at 15 percent, rather than as salary, which would be taxed as ordinary income with a top rate of 35 percent. This happens because the managers are paid with a fee (up to 2 percent) plus 20 percent or more of their investor’s profits. Those profits are taxed as capital gains even though the general partners may have little or no money of their own at risk in the deal.".......