Why do billionaires pay lower tax rates than most workers?

The now pending multi-trillion-dollar budget reconciliation bill before Congress represents an enormous opportunity to invest in unmet needs and close loopholes that let the wealthy avoid their fair tax share.

One of the most extreme examples of tax privilege: the “carried interest” loophole that allows wealthy private equity managers to pay a lower tax rate than most middle-class Americans. It is a major reason that billionaires saw their wealth increase over 22% in the past year.

We need to end this tax loophole and take other actions to rein in private equity abuses. Then we will have the resources to Build Back Better.