Seriously, this is a defining issue for Democrats.

The idea that the commissions that people get for investing other people’s money should be taxed as capital gains is a disgrace.,

Bill Is Offered to Increase Tax on Private Equity

By JENNY ANDERSON and ANDREW ROSS SORKIN

Interest on Capitol Hill in raising taxes on private equity and hedge fund managers reached a peak yesterday as leading Democrats introduced a bill that would more than double taxes on most of the income earned by partnerships, including private equity managers, venture capitalists and some hedge funds.

Representatives Charles B. Rangel of New York, the chairman of the House Ways and Means Committee, and Sander M. Levin of Michigan joined 12 other Democrats in introducing the legislation to tax the performance income earned by many partnerships, including private equity firms, at ordinary income tax rates of 35 percent instead of the current 15 percent capital gains rate.

“Congress must ensure our tax code is fair,” said Mr. Levin, who has been looking at the measure since a friend of his, a retired tax lawyer, brought the issue to his attention a few months ago. The congressman insisted the bill was meant to address equitable tax treatment and was not an attempt to penalize success. “Some Republicans have attacked us for trying to soak the rich,” he said. “I am not trying to soak the rich; I am trying to find tax equity.”

Exactly the point.