Edwards Statement On Failure Of Congress To Pass Tax Reform Legislation

Chapel Hill, North Carolina – Following reports that lobbyists have successfully held up tax reform legislation closing the loophole that allows millionaire hedge fund and private equity managers to pay taxes on most of their income at a 15 percent rate, Sen. John Edwards released this statement:

"Today, America learns another striking example of how broken Washington is. Congress' failure to pass tax reform that would have closed loopholes that let private equity and hedge fund managers pay only 15 percent in taxes on most of their income is testament to the terrible power that lobbyists have to stop real reform – reform that would ensure a fairer America. As a result, rich private equity and hedge fund managers will continue to pay only 15 percent in taxes on most of their income – which can be hundreds of millions, or even billions, of dollars a year – while ordinary hard-working Americans will pay twice that rate or more in income and payroll taxes. Worst of all, real reform was stopped by one factor alone – D.C. lobbyists.

"Incredibly, for an investment of about $6 million dollars in lobbying fees – and another $6 million in political contributions – these elite Wall Street traders preserved a $6 billion tax break for themselves. America needs a leader who will stand up to these powerful interests and who will fight for real change that makes America better and stronger.

"We can't just trade corporate Republicans for corporate Democrats. We have to end the rigged system in Washington that rewards big corporate interests at the expense of hard-working families. This is a perfect example of why we need to change the way Washington works, and why we need tax fairness so hedge fund millionaires don't pay taxes at a lower rate than middle class families."