Bracket Creep

Lots of carried interest news today, including this from Bloomberg.

Under pressure from his Republican opponents, former Massachusetts Governor Mitt Romney yesterday abandoned months of resistance and said he would make his 2011 tax return public in April.The hesitation to disclose is understandable given that Romney, one of the richest men to seek the presidency, probably benefits from a controversial tax break that allows him to pay a lower rate than do millions of American wage-earners whose votes he’ll need to capture the White House.That’s because private equity executives, as Romney was for 15 years when he ran Boston-based Bain Capital LLC, receive much of their compensation in what is known as carried interest. That enables them to treat what would be ordinary income for other service providers, taxed at rates as high as 35 percent, as capital gains taxed at 15 percent.

via Romney as Multimillionaire Gets Break for Taxes Less Wage-Earner – Bloomberg.