Carried Interest Loophole Survives the Inflation Reduction Act

A major overhaul to the tax code is off the table, but Sens. Joe Manchin (D-W.Va.) and Chuck Schumer (D-N.Y.) ushered in a slate of smaller reforms as part of the Inflation Reduction Act of 2022, which President Joe Biden signed into law last week. The far-reaching legislation contains provisions aimed at lowering prescription drug costs, stimulus for alternative energy and climate initiatives, and is intended as a whole to reduce inflationary pressures and stave off a recession. Earlier versions of the Inflation Reduction Act also included a provision to close the carried interest loophole—until Sen. Kyrsten Sinema ...