Elsewhere online
March 07, 2016

How Billionaire Donor Rubenstein Has Fought to Save Tax Loophole

Financier David Rubenstein has benefitted from — and fought against closing — what's known as the carried-interest tax loophole, according to The New Yorker and ProPublica.

Mr. Rubenstein, a cofounder of the Carlyle Group who has been a major backer of what he calls "patriotic philanthropy," supporting the restoration and protection of American cultural heritage, pays a low tax rate on the profits from assets his firm manages. Opponents say the way such private-equity partnerships are taxed perpetuates economic inequality.

Attempts to close the loophole have failed, and firms including Carlyle have lobbied against them.

Victor Fleischer, a tax-law professor and opponent of the loophole told the reporter Alec MacGillis, "We’re creating what’s essentially a parallel system, where a small number of individuals control quasi-public spending, and that will reflect their values and not democratic values.”