Pacific Investment Management Co. co-founder and co-chief investment officer Bill Gross is urging the wealthiest people in the U.S. to pay higher taxes in an effort to help the country’s economy.
Reuters reported that Gross said in his most recent investment outlook letter that the “privileged 1%... should be paddling right alongside and willing to support higher taxes on carried interest, and certainly capital gains readjusted to existing marginal income tax rates." Gross also insisted that increasing taxes could improve the U.S. competitive position compared with Germany and Canada.
Carried interest, which is the amount hedge fund and private equity managers make from a firm’s performance, is currently taxed at the capital gains rate of 20% compared to the nearly 40% rate on ordinary income.
Billionaire investor Warren Buffett and Duquesne Capital Management founder Stanley Druckenmiller are among some of the financiers who have advocated similar proposals.
Gross, who has pledged to give away all of his money before passing, currently oversees approximately $2 trillion in assets at PIMCO.