To judge by the comments on the piece posted here the other day about Mitt Romney and the taxation of carried interest, not everyone has been fully convinced. Maybe this article by J. William Dantzler Jr., a tax lawyer at White & Case, will do a better job of explaining it. He asks:
Do we really want a tax law in which only people who already have money can earn a capital gain? And, if earning a capital gain requires an investment, then how much? Does it have to be a big investment? Can it be borrowed from the other partners? Isn't a carried interest in effect just a loan from the moneyed partners?
The comments on the Dantzler article are worth a look, too. Bloomberg View should get some credit for running the article after its editorial campaign for raising capital gains taxes on managers of investment partnerships.