Carried Interest Fairness Act of 2025

House Bill

H.R. 1091

119th Congress

Carried Interest Fairness Act of 2025

In Committee

Introduced:May 20, 2025

Primary Sponsor

Frederica S. Wilson

Representative

Democratic

FL-24

Cosponsors

21

Quick Stats

Policy Area

Crime and Law Enforcement

Summary

This bill addresses the tax treatment of carried interest, which is compensation received by investment fund managers typically taxed at lower capital gains rates rather than ordinary income rates. The Carried Interest Fairness Act would change how this income is taxed to ensure investment managers pay rates comparable to other workers on their compensation. The bill targets private equity, hedge fund, and venture capital managers whose carried interest earnings have been criticized as receiving preferential tax treatment.

Latest Action

Referred to the House Committee on the Judiciary.

SponsorFrederica S. Wilson (D-FL)

Introduced5/20/2025

StatusReferred to the House Committee on Ways and Means.

ChamberHouse

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Vote Prediction

Carried Interest Fairness Act of 2025

This bill addresses the tax treatment of carried interest, which is compensation received by investment fund managers typically taxed at lower capital gains rates rather than ordinary income rates. The Carried Interest Fairness Act would change how this income

Community Breakdown

Pass

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Fail

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0 predictions

This bill addresses the tax treatment of carried interest, which is compensation received by investment fund managers typically taxed at lower capital gains rates rather than ordinary income rates. The Carried Interest Fairness Act would change how this income is taxed to ensure investment managers pay rates comparable to other workers on their compensation. The bill targets private equity, hedge fund, and venture capital managers whose carried interest earnings have been criticized as receiving preferential tax treatment.

Bill Number: 1091
Sponsor: Frederica S. Wilson (D-FL)
Introduced: 5/20/2025
Status: Referred to the House Committee on Ways and Means.
Policy Area: Crime and Law Enforcement

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Carried Interest Fairness Act of 2025
Bill Number: 1091
Sponsor: Frederica S. Wilson (D-FL)
Status: Referred to the House Committee on Ways and Means.
Introduced: 5/20/2025
Summary: This bill addresses the tax treatment of carried interest, which is compensation received by investment fund managers typically taxed at lower capital gains rates rather than ordinary income rates. The Carried Interest Fairness Act would change how this income is taxed to ensure investment managers

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill addresses the tax treatment of carried interest, which is compensation received by investment fund managers typically taxed at lower capital gains rates rather than ordinary income rates. The Carried Interest Fairness Act would change how this income is taxed to ensure investment managers pay rates comparable to other workers on their compensation. The bill targets private equity, hedge fund, and venture capital managers whose carried interest earnings have been criticized as receiving preferential tax treatment.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Stop Hate Crimes Act of 2023 This bill lowers the statutory burden of proof for showing intent with respect to a federal hate crime offense. Current law makes it unlawful to willfully cause bodily injury, or attempt to do so using a dangerous weapon, because of the actual or perceived protected characteristic (e.g., race) of a person. In 2014, the U.S. Court of Appeals for the Sixth Circuit held that the because of standard requires proof that a person's actual or perceived protected characteristic was the sole motivating factor in the offense. This bill replaces the because of standard with a new standard. Specifically, willfully causing bodily injury, or attempting to do so using a dangerous weapon, is a hate crime offense if a person's actual or perceived protected characteristic was a contributory motivating factor in the offense.

Key Points

Main provisions of the bill

Addresses tax treatment of carried interest income
Targets investment fund manager compensation
Aims to close preferential tax rate for fund managers
Affects private equity, hedge funds, venture capital
Increases tax fairness for investment compensation

How This Impacts Americans

Potential effects on citizens and communities

For fund managers: Higher tax rates on carried interest income. For tax fairness advocates: Closing perceived tax loophole. For federal revenue: Increased tax collection from wealthy managers. For investment industry: Changed compensation economics. For tax code: Alignment of investment income treatment.

Policy Areas

Primary Policy Area

Crime and Law Enforcement

Related Subjects

Evidence and witnesses

Hate crimes

Violent crime

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

1091, 119th Congress (2025). "Carried Interest Fairness Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-1091

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