“Here’s the catch on the tax side and what the protestors (Occupy Wall Street) and others including the Obama administration, characterize as a loophole: Carried interest is considered investment income and therefore taxed at a capital gains rate, which in 2012 stood at 15 percent, versus the top ordinary income rate of about 35 percent,” writes Kelly.
For those in the financial industry, this book is a good read. For those readers that have a mild or no interest in the private equity industry but would like to learn more about the issues surrounding this particular presidential race, the book provides enough detail to gain a better understanding of what these investment firms do for the job’s market as well for their investors. Private equity firms have been out to look like the destroyers of business and industry when in fact thousands of companies have been created and millions of people have been employed through the dynamic groups.
As a business writer myself, The New Tycoons reinforced the fact that private equity firms are not the evil doers portrayed over the past few months through political ads and often in the main stream media, whose very companies may well be owned by a private equity group.