Venture Capitalists Mobilize to Protect Carried Interest Tax Break Amid Legislative Challenges

In a significant turn of events, venture capitalists (VCs) are intensifying their efforts to preserve the carried interest tax break, facing looming legislative hurdles that threaten this long-standing tax advantage. The carried interest provision allows fund managers to pay capital gains tax rates on a portion of their earnings rather than ordinary income tax rates, which can be substantially higher. This provision has enabled VCs to funnel billions into startups and other investments, promoting economic growth and innovation.

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