A group of Senate Democrats recently sent a letter urging President Trump to eliminate the so-called “carried interest loophole.” Their argument is predictable: that private equity managers are avoiding taxes and exploiting the system at the expense of everyday Americans. But like many progressive talking points, the letter is heavy on rhetoric and light on economic understanding.
Carried interest is not a loophole. It’s a long-standing, well-established tax provision that treats investment profits as capital gains — because that’s exactly what they are. Fund managers and investors only earn carried interest when they take real financial risk and generate returns over time. Unlike salaried workers, these individuals often invest personal capital, guarantee debt, and work for years with no income. That’s not tax evasion — it’s how entrepreneurship works.
We’re especially grateful to Speaker Mike Johnson and conservatives in the House for recognizing this. The Big Beautiful Tax Bill passed by the House preserved carried interest treatment, and in doing so, protected critical energy investment in Louisiana and across the country. It’s a victory for jobs, growth, and common sense.
Here in Louisiana, carried interest is essential to the oil and gas sector. Smaller producers depend on private equity partnerships to fund drilling and infrastructure projects that fuel the American economy. Changing the tax treatment would dry up capital, slow innovation, and threaten energy security.
We urge Senators John Kennedy and Bill Cassidy to stand firm. Reject the progressive talking points from your Democratic colleagues and defend the tax provisions that keep Louisiana’s economy strong.
Carried interest is not a giveaway — it’s a cornerstone of growth. Let’s protect it.
Alton Phillips
