Contact Congress about S. 3317: Ending the Carried Interest Loophole Act
Many fund managers would pay regular income tax on carried interest, not the lower tax rate for investment gains. The bill also adds yearly reporting and anti-abuse rules for partnerships.
Modern Action explains legislation in plain English, helps you choose whether to support, oppose, or ask for changes, and drafts a message tied to the bill, your stance, and the elected officials who can act on it.
Ending the Carried Interest Loophole Act is a Senate bill in Congress.
Who this affects: This bill mainly affects people who get partnership profit shares for managing investment money. It matters most for managers in private equity, hedge funds, venture capital, and similar fund businesses. Partnerships that issue these interests would also face new reporting duties. Most ordinary taxpayers would not be directly affected unless they hold or receive one of these interests.
Why this matters: This bill matters because it changes how some high-income fund pay is taxed. It would move more carried interest into ordinary income, which is often taxed at higher rates than capital gains. The bill could raise federal revenue, though the exact amount is not stated here. It could also make fund tax planning more complex because the new system uses yearly formulas, loan rules, reporting duties, and future Treasury regulations.
Key provisions in S. 3317
- Most partnership interests received for work would be treated as taxable right away. The recipient could choose out of that treatment.
- The value would be based on a pretend cash sale of all partnership assets. The bill assumes the money is then paid out as if the partnership closed.
- The amount taxed when the interest is granted would increase the person's partnership capital account. For covered interests, it would also count as invested capital in later section 1299 calculations.
- The bill broadly defines covered partnership interests. It applies to interests tied to services in businesses that regularly raise or return capital and invest in or develop specified financial or investment assets.
- Each year, covered taxpayers would include a calculated deemed compensation amount in gross income. It would be taxed as ordinary income and matched with an equal long-term capital loss.
How Modern Action helps you take action on S. 3317
You do not have to start with a blank letter. Modern Action turns the bill, your position, and the relevant congressional context into a message you can edit and send. The goal is to make contacting Congress clear, specific, and useful without forcing you to parse bill text or figure out the right office on your own.
Questions people ask about S. 3317
- What is S. 3317?
- Many fund managers would pay regular income tax on carried interest, not the lower tax rate for investment gains. The bill also adds yearly reporting and anti-abuse rules for partnerships.
- How do I support or oppose S. 3317?
- Choose support, oppose, or ask for changes on Modern Action. The action flow drafts the message for you and keeps the wording tied to this bill.
- Who should I contact about S. 3317?
- Modern Action uses your location to route the action to the congressional offices relevant to the bill and your representation.
- Can Modern Action explain S. 3317 before I act?
- Yes. Modern Action gives you a plain-English summary, current status, and action context before you send anything.
