Senators Ron Wyden (D-OR), Sheldon Whitehouse (D-RI) and Angus King (I-ME) introduced the Ending the Carried Interest Loophole Act to the U.S. Senate on April 16, 2026. Under the carried interest rules, hedge fund, venture capital and private equity executives can recharacterize certain partnership income as capital gains, thus qualifying it for a lower income tax rate. Supporters of the current tax treatment of carried interest assert that it encourages long-term investment. But the bill’s sponsors cite Joint Committee on Taxation research that says closing the loophole could raise $63.1 billion over a 10-year period.
