Changes

As explained by a spot-on article in ''[[Mother Jones]]'', private equity is "a $7.3 trillion industry that touches basically everything in your life, and it’s growth has had serious consequences for workers, patients, and consumers."<ref name="M">https://www.motherjones.com/politics/2023/02/toomey-private-equity-carried-interest/</ref>  Private equity exploits a notorious "carried interest" tax loophole, and senators who have prevented its repeal have subsequently joined private equity firms benefiting from it, as [[Opposition to Donald Trump|anti-Trump]] [[Pat Toomey]] did in 2023 after being an "all-star" in protecting the tax dodge against efforts by Trump to repeal it.<ref name="M"/>

As explained by a spot-on article in ''[[Mother Jones]]'', private equity is "a $7.3 trillion industry that touches basically everything in your life, and it’s growth has had serious consequences for workers, patients, and consumers."<ref name="M">https://www.motherjones.com/politics/2023/02/toomey-private-equity-carried-interest/</ref>  Private equity exploits a notorious "carried interest" tax loophole, and senators who have prevented its repeal have subsequently joined private equity firms benefiting from it, as [[Opposition to Donald Trump|anti-Trump]] [[Pat Toomey]] did in 2023 after being an "all-star" in protecting the tax dodge against efforts by Trump to repeal it.<ref name="M"/>

Preferential [[capital gains]] tax treatment should be available only for personal assets that are at risk of loss as well as gain, but managers of private equity exploit this far lower tax rate for most of their compensation without having their personal assets at risk.

Preferential [[capital gains]] tax treatment should be available only for personal assets that are at risk of loss as well as gain, but managers of private equity exploit this far lower tax rate for nearly all of their compensation without being based on having personal assets at risk.

 

Private equity often loads small companies with debt, while laying off their employees and putting the companies on a path to financial ruin.  In the process private equity firms seek to "flip" the targets to pocket a profit for themselves at the expense of employees and the community.

Critics point out that private equity firms are run by shrewd people who are skilled at exploitation, without adding any real value.  Trump and many others aware of private equity firms dislike them for subtracting rather than adding value.  “These are guys that shift paper around and they get lucky,” Trump said in criticism of private equity managers and their special tax break on compensation.<ref>https://www.motherjones.com/politics/2022/05/carried-interest-loophole-biden-trump-private-equity-tax-break/</ref>

Critics point out that private equity firms are run by shrewd people who are skilled at exploitation, without adding any real value.  Trump and many others aware of private equity firms dislike them for subtracting rather than adding value.  “These are guys that shift paper around and they get lucky,” Trump said in criticism of private equity managers and their special tax break on compensation.<ref>https://www.motherjones.com/politics/2022/05/carried-interest-loophole-biden-trump-private-equity-tax-break/</ref>