House Ways and Means Chair Dave Camp Proposes Recharacterizing Carried Interest as Ordinary Income

House Ways and Means Chair Dave Camp Proposes Recharacterizing Carried Interest as Ordinary Income The passage outlines a specific legislative proposal by a high‑ranking House official that could dramatically increase taxes on private‑equity managers. It provides concrete details (recharacterization formula, annual tracking, exclusions) and names key actors (Chairman Dave Camp, President Obama, private‑equity trade group CEO Steve Judge). While the proposal is public and already reported, the technical specifics offer a tangible lead for investigating lobbying efforts, potential financial impacts on private‑equity firms, and any behind‑the‑scenes influence from industry or foreign investors. Key insights: Dave Camp (House Ways and Means Chair) proposes treating carried‑interest compensation as ordinary income.; The plan includes a recharacterization formula using the federal long‑term rate +10 pp to approximate service compensation.; Excludes real‑estate partnerships and adjusts for partners' capital contributions.