How the Carried Interest Loophole Survives in 2026

Lucas and Luna unpack the carried interest loophole — why private equity and hedge fund managers pay a lower tax rate than many teachers and nurses. They walk through how it works in a typical fund structure, why it survived the 2017 Tax Cuts and Jobs Act with only a minor change (a three-year holding period), and why bipartisan anger hasn't killed it. The episode focuses on a concrete example: a hypothetical $500 million fund, a hypothetical $50 million carried interest payout, and how the tax bill differs under the current rules versus ordinary income treatment. They also touch on the 2024–2026 political landscape, including the proposed 'Carried Interest Fairness Act' that stalled in committee. This is not an attack on private equity — it's a clear-eyed explanation of a policy quirk that redistributes billions in tax liability every year. #CarriedInterest #PrivateEquity #HedgeFunds #TaxPolicy #Loophole #IncomeInequality #TaxCutsAndJobsAct #CapitalGains #OrdinaryIncome #PartnershipTax #TaxReform #Economics #FexingoBusiness #BusinessPodcast #TaxPolicyPodcast #LucasAndLuna #TaxCode #WealthInequality Keep every episode free: buymeacoffee.com/fexingo