Posted on May 9, 2025
Trump urges Speaker Mike Johnson to raise taxes on the wealthy, adding new wrinkle to massive GOP...
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Nobody likes a tax increase. But adding this 37.9% bracket for above $2.5M (which will impact about 0.1% of Americans) will probably mean the difference in not cutting mandatory spending, and making room for our first $1T defense budget.
Trump urges Speaker Mike Johnson to raise taxes on the wealthy, adding new wrinkle to massive GOP...
Posted from nbcnews.comPosted in these groups: 
Political Opinions
Political Opinions
Posted 9 mo ago
Responses: 4
They should eliminate the carried interest loophole too. Hedge fund managers are raking in the dough over that special tax treatment.
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COL Randall Cudworth
I agree, just on the principle of it. However, even if fully eliminated and CI is treated as normal income, the positive impact to the budget will be pretty minimal (CBO estimates it to be $13B over a 10-year period*).
But, as the saying goes, "A billion here and a billion there ... soon you're talking about real money."
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* CBO projections - Tax Carried Interest as Ordinary Income - https://www.cbo.gov/budget-options/60946
But, as the saying goes, "A billion here and a billion there ... soon you're talking about real money."
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* CBO projections - Tax Carried Interest as Ordinary Income - https://www.cbo.gov/budget-options/60946
Tax Carried Interest as Ordinary Income | Congressional Budget Office
Investment funds—such as private equity funds, real estate funds, and hedge funds—are often organized as partnerships. Those partnerships typically have two types of partners: general partners and limited partners. General partners manage investment funds and typically receive two types of compensation: a management fee tied to a percentage of the fund's assets and a percentage of the fund's profits, which is called carried interest.
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I think this is a wrong move by Trump and the republican Congress, and a trillion dollar defense budget feels wrong too.
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SGM Jeff Mccloud
LTC Trent Klug I agree that $1T feels excessive, especially during what should be a post-war draw down.
At the same time, if it is $1T, it still won't seem like enough because regardless of budget, we always seem to task the military at about 30% more than we can afford to resource them. The DoD and all branches need to make some significant cuts, and I don't mean budget.
For the tax increase, the GOP could conceivably lose some billionaire support, but I doubt it, as they all know the money they spend on GOP has a better chance at income and/or corporate tax cuts than spending on DNC.
And the other 99.9% of GOP voters not impacted by this tax increase are still just gonna vote GOP.
At the same time, if it is $1T, it still won't seem like enough because regardless of budget, we always seem to task the military at about 30% more than we can afford to resource them. The DoD and all branches need to make some significant cuts, and I don't mean budget.
For the tax increase, the GOP could conceivably lose some billionaire support, but I doubt it, as they all know the money they spend on GOP has a better chance at income and/or corporate tax cuts than spending on DNC.
And the other 99.9% of GOP voters not impacted by this tax increase are still just gonna vote GOP.
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LTC Trent Klug
SGM Jeff Mccloud I see it as a bare nakedness play to assuage democrat voters and their 'fair share' mantra.
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SGM Jeff Mccloud
LTC Trent Klug - I really think it's about avoiding the bigger fight, because the keeping all of the current tax cuts past this year, would require cuts to mandatory spending that would get a majority of both sides of the house voted out in 2026.
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