Under the bill, carried interest for the first 2 years will be taxed at ordinary income and capital gains rates — a 50/50 split, which amounts to a tax rate of roughly 30 percent. That split changes to 75/25 after 2 years, which amounts to a 35 percent rate.
A score on this provision from the Joint Committee on Taxation has not been released.
The bill also curtails some abuses of the foreign tax credit system, which raises roughly $14.5 billion, according to the JCT.
Senate Finance Chairman Max Baucus (D-Mont.) and House Ways and Means Chairman Sandy Levin (D-Mich.) are supposed to introduce the bill later today.