U.S. Sen. Charles Grassley, R-Iowa and ranking Republican member on the Senate Finance Committee, told CNBC’s “Power Lunch” that he hasn’t yet decided if raising taxes on hedge funds is a good idea.
“What we have to study and make a determination about is the carried interest income –- is that money that has been worked for and earned?” Grassley asked Wednesday. “If it is, it’s taxed at the earned income tax rate. If it’s capital gains, it’s taxed at the capital gains rate … We’re not talking about a change in the principles of earned income or capital gains.”
Grassley said he didn’t know how much revenue the new tax might raise. That determination will be made the Joint Committee on Taxation.