MSNBC's Stephanie Ruhle said there's one tax loophole that nearly everyone on both sides of the aisle says should be closed. Yet, they've done nothing about it for years.
That may soon change as the deal struck last week between Sen. Joe Manchin (D-W.Va.) and Senate Majority Leader Chuck Schumer (D-N.Y.) could finally close what's known as the carried interest loophole.
"Carried interest is a share of the profits that private equity or hedge fund managers take as compensation. It's a performance fee," Ruhle explained on MSNBC on Monday night. "And under existing law, this money earned by these executives ― a tiny group of the most highly compensated businesspeople on Earth ― they get taxed at a capital gains rate of just 20 percent."
That is half the typical tax rate for other high-income earners.
"SO WHY DOES IT STILL EXIST?" she tweeted:
Watch her fuller explanation of the loophole ― and the one Democratic senator who might block closing it ― below. The clip also includes a conversation with former Labor Secretary Robert Reich:
This article originally appeared on HuffPost and has been updated.