Which of the following is true of investment-based income?

Question

Quizplus · Accepted Answer

Tax rates on carried investment, also known as carried interest, are now lower compared to the 1980s. This is because carried interest is currently taxed as capital gains, which have a lower tax rate than ordinary income tax rates. In the 1980s, carried interest was treated as ordinary income, which had a higher tax rate. Capital gains tax rates have also fluctuated over time, but currently, they are not completely tax-free.

Which of the Following Is True of Investment-Based Income