Let me preface this thread by saying i would not pay more in tax than i have to and dont think ol Willard should either, but........ can someone explain to me why carried interest is a good idea? So basically private equity managers and hedge fund gurus get to be taxed at 15%? Why are they taxed less than i am? What is they special thing they are doing to pay lower taxes? "Much of Romney's fortune likely qualifies as what is known as "carried interest," a share of profits earned by private equity managers taxed at the 15 percent capital gains tax rate rather than the maximum 35 percent wage rate. Private equity managers, some hedge fund executives and venture capitalists benefit from carried interest. Campaign officials said Romney had carried interest of $7.4 million in 2010 and $5.5 million in 2011. Critics say the 15 percent rate for carried interest is an unfair tax break because investment managers, as Romney was, are providing a service that should be taxed at the higher rate paid by wage earners. "