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Carried Interest Is Back in the Headlines. Why It’s Not Going Away.

Business

Carried Interest Is Back in the Headlines. Why It’s Not Going Away.

Published

3 years ago

on

August 6, 2022

By

Doni Glover

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For years, Democrats and even some Republicans such as former President Donald J. Trump have called for closing the so-called carried interest loophole that allows wealthy hedge fund managers and private equity executives to pay lower tax rates than entry-level employees.

Those efforts have always failed to make a big dent in the loophole — and the latest proposal to do so also faltered this week. Senate leaders announced on Thursday that they had agreed to drop a modest change to the tax provision in order to secure the vote of Senator Kyrsten Sinema, Democrat of Arizona, and ensure passage of their Inflation Reduction Act, a wide-ranging climate, health care and tax bill.

An agreement reached last week between Senator Chuck Schumer, the majority leader, and Senator Joe Manchin III, Democrat of West Virginia, would have taken a small step in the direction of narrowing carried interest tax treatment. However, it would not have eliminated the loophole entirely and could still have allowed rich business executives to have smaller tax bills than their secretaries, a criticism lobbed by the investor Warren E. Buffett, who has long argued against the preferential tax treatment.

The fate of the provision was always in doubt given the Democrats’ slim control of the Senate. And Ms. Sinema had previously opposed a carried interest measure in a much larger bill called Build Back Better, which never secured the 50 Senate votes needed — Republicans have been unified in their opposition to any tax increases.

Had the legislation passed in the form that Mr. Schumer and Mr. Manchin presented it last week, the shrinking of the carried interest exception would have brought Democrats a tiny bit closer to realizing their vision of making the tax code more progressive.

What is carried interest?

Carried interest is the percentage of an investment’s gains that a private equity partner or hedge fund manager takes as compensation. At most private equity firms and hedge funds, the share of profits paid to managers is about 20 percent.

Under existing law, that money is taxed at a capital-gains rate of 20 percent for top earners. That’s about half the rate of the top individual income tax bracket, which is 37 percent.

The 2017 tax law passed by Republicans largely left the treatment of carried interest intact, after an intense business lobbying campaign, but did narrow the exemption by requiring private equity officials to hold their investments for at least three years before reaping preferential tax treatment on their carried interest income.

What would the Manchin-Schumer agreement have done?

The agreement between Mr. Manchin and Mr. Schumer would have further narrowed the exemption, in several ways. It would have extended that holding period to five years from three, while changing the way the period is calculated in hopes of reducing taxpayers’ ability to game the system and pay the lower 20 percent tax rate.

Senate Democrats say the changes would have raised an estimated $14 billion over a decade, by forcing more income to be taxed at higher individual income tax rates — and less at the preferential rate.

The longer holding period would have applied only to those who made $400,000 per year or more, in keeping with President Biden’s pledge not to raise taxes on those earning less than that amount.

The tax provision echoed a measure that was initially included in the climate and tax bill that House Democrats passed last year but that stalled in the Senate. The carried interest language was removed amid concern that Ms. Sinema, who opposed the measure, would block the overall legislation.

Why hasn’t the loophole been closed by now?

Many Democrats have tried for years to completely eliminate the tax benefits private equity partners enjoy. Democrats have sought to redefine the management fees they get from partnerships as “gross income,” just like any other kind of income, and to treat capital gains from partners’ investments as ordinary income.

Such a move was included in legislation proposed by House Democrats in 2015. The legislation would also have increased the penalties on investors who did not properly apply the proposed changes to their own tax filings.

The private equity industry has fought back hard, rejecting outright the basic concepts on which the proposed changes were based.

“No such loophole exists,” Steven B. Klinsky, the founder and chief executive of the private equity firm New Mountain Capital, wrote in an opinion article published in The New York Times in 2016. Mr. Klinsky said that when other taxes, including those levied by New York City and the state government, were accounted for, his effective tax rate was between 40 and 50 percent.

What would the change have meant for private equity?

The private equity industry has defended the tax treatment of carried interest, arguing that it creates incentives for entrepreneurship, healthy risk-taking and investment.

The American Investment Council, a lobbying group for the private equity industry, described the proposal as a blow to small business.

“Over 74 percent of private equity investment went to small businesses last year,” said Drew Maloney, chief executive of the council. “As small-business owners face rising costs and our economy faces serious headwinds, Washington should not move forward with a new tax on the private capital that is helping local employers survive and grow.”

The Managed Funds Association said the changes to the tax code would hurt those who invested on behalf of pension funds and university endowments.

“Current law recognizes the importance of long-term investment, but this proposal would punish entrepreneurs in investment partnerships by not affording them the benefit of long-term capital gains treatment,” said Bryan Corbett, the chief executive of the association.

“It is crucial Congress avoids proposals that harm the ability of pensions, foundations and endowments to benefit from high-value, long-term investments that create opportunity for millions of Americans.”

Jim Tankersley contributed reporting.

Read the full article here

Black Wall Street

Mandy Bowman and the Rise of Black Women in Business: A Testament to Tenacity and Transformation

Published

42 minutes ago

on

July 24, 2025

By

Doni Glover

(NEW YORK – July 24, 2025) – There’s a revolution happening in American entrepreneurship, and Black women are leading the charge. They’re launching businesses at historic rates—owning nearly 2.7 million businesses and contributing over $60 billion annually to the U.S. economy. But beyond the stats and headlines lies a deeper story of courage, vision, and unwavering purpose.

Enter Mandy Bowman, a powerhouse Brooklyn native and the founder of Official Black Wall Street (OBWS)—a digital platform and mobile app that has become one of the nation’s premier directories for Black-owned businesses. If you’re looking for a definition of modern Black entrepreneurial excellence, Mandy is it. The girl is a beast.

Building Legacy Through Innovation

Inspired by the history of Tulsa’s original Black Wall Street and driven by the economic disparities she witnessed in her own community, Mandy didn’t just talk about change—she built the platform to create it.

While working full-time as the social media manager at Essence Magazine, Mandy poured her off-hours, weekends, and soul into launching Official Black Wall Street. Her mission? To make it easy to find and support Black-owned businesses—and to revive the spirit of economic self-determination that once defined Tulsa’s Greenwood District.

In her words, “I felt like I was losing my sanity watching the news. The only thing that made me feel like I was making a difference was going home and influencing people to withhold their money from those who didn’t value us and instead invest it in our own.”

A Tech Tool Rooted in Purpose

Mandy launched OBWS as a website, but she didn’t stop there. She envisioned an app that could empower users nationwide to locate Black-owned businesses in their area, access deals, attend community events, and even learn the nuts and bolts of entrepreneurship. With her Official Black Wall Street app, she created more than a directory—she created a digital movement.

Now, with a team of city reps, contributors, and developers, Mandy is scaling what began as a late-night side hustle into an essential resource for economic empowerment.

The Face of a Broader Movement

Mandy Bowman isn’t alone—she represents a wave of bold, brilliant, and barrier-breaking Black women who are turning frustration into fuel and dreams into dollars. From startups to boardrooms, from tech to wellness to finance, Black women are starting businesses faster than any other group in the country. Yet they often do so with far less access to capital and a higher rate of rejection from lenders and investors.

Still—they persist. Still—they thrive.

What makes Mandy’s story so powerful is that it reflects both the incredible heights Black women can reach and the structural challenges they’re still forced to navigate. It’s the grind, the vision, and the refusal to be left behind that make Black women entrepreneurs a force this economy can no longer afford to ignore.

A Celebration and a Call

Mandy Bowman is not just a founder. She’s a fighter, a visionary, a digital architect of the new Black economy. Her success with OBWS is proof of what happens when brilliance meets opportunity—and why it’s so crucial that we invest in, support, and uplift Black women entrepreneurs.

So here’s to Mandy—and to the millions of women like her whose stories may not yet be in the headlines but whose impact is undeniable.

At BlackUSA.News, we honor your hustle. We celebrate your excellence. And we commit to amplifying your voice.

Because when Black women build, we all rise.

🖤 Support the movement. Download the Official Black Wall Street app and discover the power of buying Black today.
📲 www.officialblackwallstreet.com
✊🏾 Follow, support, invest—and watch the legacy unfold.

Business

Black Women in Business: A Celebration of Tenacity, Triumph, and Transformation

Published

48 minutes ago

on

July 24, 2025

By

Staff Reporter

Photo: Veteran journalist and publisher Cheryl Smith has been a powerful voice in Black media for over four decades. A Florida A&M alum, Smith is founder of I Messenger Enterprises, publisher of Texas Metro News, Garland Journal, and I Messenger. From The Dallas Weekly to KKDA-AM, she’s shaped news, mentored youth, and championed community causes. A trailblazer, educator, and award-winning leader, Smith continues to uplift voices and inspire change in North Texas and beyond.

(WASHINGTON, DC – July 24, 2025) – Across boardrooms, storefronts, and startup spaces nationwide, Black women are rewriting the story of American entrepreneurship. They are not just participating—they are leading. With nearly 2.7 million Black women-owned businesses across the United States, generating over $60 billion in annual revenue, these trailblazers are pushing past obstacles and creating new paths of possibility.

At BlackUSA.News, we celebrate these women not only for their bold business ventures, but for the powerful statement they make every single day: We will not be denied.

The Fastest Growing Force in Business

From 2014 to 2019, the number of businesses owned by Black women grew by 50%—the highest growth rate of any female demographic. Black women now make up 42% of all new women-owned businesses and represent 36% of all Black employers. This is no small feat; it is a revolution.

This surge is more than a trend—it’s a testament to vision, resilience, and grit. Whether launching a beauty brand, building a tech company, founding a nonprofit, or running a food truck, Black women are stepping into their power and redefining success on their own terms.

Courage in the Face of Challenges

The road to entrepreneurship is rarely smooth—and for Black women, the path is often filled with barriers that others never encounter. Discriminatory lending practices, lack of access to venture capital, and systemic economic inequalities persist. Nearly two-thirds of Black women entrepreneurs self-fund their businesses, despite having less generational wealth or household income compared to their white counterparts.

And yet—they rise.

Even as fewer than 3% of Black women-owned businesses reach the five-year mark, this community of innovators continues to build, to dream, and to rise above the statistics. They juggle caregiving, full-time jobs, and community commitments—often working double-time just to stay in the game.

Their businesses may be born out of necessity, but they are driven by purpose. And that purpose is reshaping industries and communities.

The Legacy Continues

From the legacy of Madam C.J. Walker, the first self-made Black woman millionaire, to modern moguls like Oprah Winfrey, Janice Bryant Howroyd, Cathy Hughes, and Beyoncé Knowles-Carter, Black women have long shown what’s possible when brilliance meets opportunity.

And today, new names are being etched into that legacy. Names like Rosalind Brewer, CEO of Walgreens Boots Alliance. Sheena Allen, fintech founder. Melissa Butler, creator of The Lip Bar. Pinky Cole, founder of Slutty Vegan. The list grows by the day—and every name represents a story of perseverance and power.

A Call to Action

It’s not enough to applaud Black women from the sidelines—we must invest in them, mentor them, partner with them, and amplify their work. The financial community, government agencies, and private institutions all have a role to play in eliminating structural inequities and providing real access to capital, networks, and growth opportunities.

As JPMorgan Chase’s Tosh Ernest puts it: “Black women are positioned to play an increasingly visible and important role in the United States’ future like never before.”

We at BlackUSA.News believe that future is already here. It’s being built every day by women who defy the odds, uplift their communities, and turn vision into value. They are not just surviving—they are thriving. And we’re proud to tell their stories.

In Their Honor

To every Black woman entrepreneur grinding before dawn, balancing motherhood with market research, transforming a side hustle into a legacy—we see you. We salute you. We celebrate you.

Because when Black women rise, we all rise.

🖤 For more stories like this, visit www.BlackUSA.News —where Black voices lead the narrative.

Business

Spotlight: The Dallas Black Chamber of Commerce — A Legacy of Leadership and Advocacy Since 1926

Published

2 hours ago

on

July 24, 2025

By

Doni Glover

(DALLAS, TX – July 24, 2025) – The Dallas Black Chamber of Commerce (DBCC) holds a distinct place in American history as the first Black chamber of commerce in the nation. Founded in 1926, the DBCC has spent nearly a century advancing the economic interests of Black-owned businesses and organizations throughout the North Texas region. More than a business network, the Chamber stands as a legacy institution, rooted in advocacy, community development, and economic empowerment.

A Mission with Momentum

From its inception, the DBCC’s mission has remained clear and unwavering: to advocate for the creation, growth, and general welfare of Black-owned businesses. Through a robust offering of referrals, technical assistance, strategic partnerships, seminars, and marketing support, the Chamber equips entrepreneurs and Black-led organizations with the tools and connections needed to thrive.

In focusing on four key areas—economic development, education, tourism/conventions, and special projects—the DBCC serves not only its members, but the broader regional economy. Its enduring commitment is to foster a vibrant ecosystem where Black enterprise can flourish.

Our Impact

The DBCC is not just about advocacy—it delivers measurable results. Over the years, the Chamber has made a tangible difference in the lives of entrepreneurs across the state:

💵 $5,000,000 in Emergency Funds Awarded
During the COVID-19 pandemic, the Chamber helped issue $5 million in emergency funding to 300 Black-owned businesses, providing critical relief when it was needed most.
🚀 2,000+ Black Businesses Served
Through innovative programs like the Black Business Bootcamps, the DBCC has supported the development and success of more than 2,000 Black-owned businesses throughout Texas.
💼 $171,000+ in Micro Grants Awarded
The Chamber’s Micro Grant program has distributed over $171,000 to Black-owned businesses in North Texas and Houston, helping fuel entrepreneurship and sustainability.

People-Powered Progress

At the heart of the Chamber’s success is its membership. The DBCC acknowledges that its true strength lies in the collective voice and vision of its business owners, innovators, and community leaders. By elevating these voices and advocating for policies that create an inclusive business environment, the Chamber helps drive structural change and sustainable opportunity.

Leading the Charge: Harrison Blair, President/CEO

A native son of Dallas, Harrison Blair embodies a multi-generational commitment to service. His family legacy—shaped by his grandfather, Bill Blair, and his father, Jordan Blair—has long been tied to civic advancement in Dallas. With degrees in Political Science from Prairie View A&M University and Texas State University, Harrison brings both academic rigor and grassroots passion to his role as President and CEO of the Chamber.

As the chief advocate for Black-owned and supported businesses in North Texas, Blair leads with both vision and action. His involvement with the North Texas Commission and the Texas Association of African American Chambers of Commerce (TAAACC) reflects a commitment to statewide and regional collaboration. Additionally, his civic service as the District 4 Park & Recreation board member for the City of Dallas, and past service on the Mayor’s Star Council, demonstrate his deep-rooted investment in the city’s future.

When he’s not at the forefront of economic advocacy, Blair supports his wife’s creative pursuits at the Dallas Theater Center—underscoring a personal belief in community and culture as essential components of growth.

A Future Built on Legacy

For nearly 100 years, the Dallas Black Chamber of Commerce has stood as a beacon of Black economic progress. As it approaches its centennial, the DBCC continues to evolve—adapting to modern challenges while holding fast to its founding values. Under the leadership of Chairwoman Shenna Thomas and President Harrison Blair, the Chamber is positioning Black businesses to not only compete but lead in a rapidly changing economy.

In Dallas and beyond, the DBCC remains a powerful testament to what’s possible when advocacy, entrepreneurship, and community come together with purpose.

📍 Learn more or get involved: https://www.dallasblackchamber.org
📢 Follow on social media to stay connected with events, programs, and opportunities.

Stay in the know about all the Dallas Black Chamber of Commerce advocacy, events, and more by subscribing to our newsletter at www.dbcc.org!
#DallasBlackChamber #BlackBusiness #CommunityAdvocacy #StayInTheKnow #SubscribeNow