Carried Interest Tax Increase Emerges in President’s Jobs Proposal

BOMA San Francisco Members:

Last week President Obama unveiled his $447 billion proposal to help the country’s sluggish economy and put the unemployed back to work. While the bill includes incentives to encourage small businesses to hire and cuts payroll taxes, it also includes a tax increase on carried interest as a revenue offset. It is estimated that changing the characterization of carried interest from a capital gain to ordinary income would raise $18 billion. BOMA International continues to actively oppose this major and permanent tax increase to a primary form of real estate investment in favor of short–term tax incentives.