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Well today SCI EU members worldwide a rallying in the unions take back the economy event their target.
Buy -- -- specifically Kohlberg Kravis and Roberts KKR.
Union claims that a buyout -- simply aren't paying their fair share of taxes Stephen Lerner is the private equity campaign director for SE I -- Service Employees International Union.
And joins us now from Washington -- and what exactly is your beef.
Well let me start off with -- there's a lot of bad news going on right now the economy's bad the banks of bad -- people being squeezed to lose in the homes and the good news.
It's all over this country actually 25 countries around the world -- -- -- hundreds city.
People are standing up and they're saying we gotta take action to take back the economy in a big piece of that is.
Let's make the private equity billionaires pay their fair share and cut out the tax loopholes that applied to them getting richer and richer while.
Income equality gets worse and worse in this country.
All right now is on your website I was -- so this information do you feel like you're misleading your union and the public by saying -- up paying their fair share -- taxes.
What you're talking about is that their tax.
Like any partners in America at 15% of the capital gains rate.
But their income is still tax that you know if they're -- over three to 57000 a year 35%.
How is that unfair.
Because where they make their money is on the on carried interest which they taxed at 15% of means effectively they're paying a lower tax for the billionaire like -- Henry Kravis.
Then the but -- always hear that engineers and retirees are they not who make capital gains aren't they also went back.
What is happening is that the by the buyout industry -- a loophole.
That allow them to avoid taxes and what's going on right now -- people all over not just in this country but in other parts of the world Hussein.
If they're billionaires that they've done extraordinarily well they should help pay taxes instead of being subsidized by working people.
And so far from being deceptive what's going on it's all over this country people standing up and saying.
Let's cut out the loopholes for the billionaire to have some tax fairness.
How are they being subsidized by the working people want me to where you people are paying for the billionaires is not enough billionaires out there for the working people about the support them.
Well what happens when a buyout company.
By something by leveraging of debt which is exactly one of the huge problems in this economy.
One they reduce how much tax they pay 'cause -- don't pay taxes on interest in second.
When they don't pay taxes and they're paying 15% vs -- school teacher -- the but that's a -- that's an unfair comparison because not all their income is carried interest even.
Right and it may go -- carried interest is 50% like everybody else to capital gains including your retirees.
So what were talking about is -- carried interest and in this case the reason why so many people in this country.
Are concerned about it and actually around the world is the way the industry structure -- they get their compensation.
Mainly from the carried interest and here's the problem we have.
More and more people in this country we've had a handful of people who have gotten richer and richer and richer and it's a problem for the country.
Because other people can't send the kids to college they can't pay their bills and we think it's wrong.
It's -- -- -- -- -- successful but they've made money and they've been doing the Harvard and went to Harvard MBA and then -- to make -- -- well -- I don't -- where they -- went to school.
But it's wrong that and a country where 47 million people don't have health insurance where people are getting foreclosed on.
That these guys get a special loophole that put some of the position enough times are you we don't we ought to listen I I wanna have a -- have been able more important what we're no I don't have any what.
I don't have carried interest I don't -- and thirty some percent.
But what I'm trying to understand is your pension -- and all anybody that gets capital gains including your retirees.
Are getting your -- were 15% -- didn't read that is them.
Henry crappy little after a couple buyout billionaires -- of which is about not it's not that.
It's not gonna it's not gonna damage them at all it's gonna do the exact company -- -- -- -- Henry Kravis.
He made Ford and fifty million dollars and one year he's worth five billion dollars to make 50000 dollars an hour every hour seven days a week 24 hours twenty thirty days a month -- -- -- 65 days.
He -- he makes.
So much money that we think of the time crisis in this country.
That what's fair is that he doesn't get a different tax rate -- other people what's the last deal that Kate -- first well Stephen did you are you aware that the SE IU.
Puts its -- 30% of SC I used pension fund in 2006.
Wasn't it KKR private equity fund.
Do you know that's actually not true what happens is not true -- That's according to your documents.
What what happens is we don't control public employee pension plans and our members are in and one of the things we're doing today is were introducing the ballot initiative and Washington State.
That will change the laws to allow pension funds to say we need to look at the total impact -- who invested.
Where New York City moving for a walk that would.
Take away on the -- incorporated if this tactic carried interest exemption in Washington we've moved to take away the carried interest loophole.
And what's really amazing is in London in Europe.
All over the world people standing up and saying.
That it the billionaires don't need more breaks we need to have tax fairness and we need to fund public service and we need to make this country work for everybody not just a few.
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