A GOP Blunder on Carried Interest

Matt Yglesias asks,

We know that some Democrats are opposed to closing the “carried interest” tax loophole because hedge fund managers give a lot of money to Democrats. But so why don’t Republicans try to embarrass the Chuck Schumers of the world by coming out against this loophole? Normally Republicans never miss a chance to do a favor to rich people, but most hedge fund money goes to Democrats so why not pull some jujitsu?

The obvious answer is sloth and stupidity, but is there some principled reason I don’t know about? The idea that some kinds of income ought to be privileged over others strikes me as odd. And if the issue is treating all income the same way to the extent this is practicable, this seems like a no-brainer, one that in this case would work to Republican advantage.

An alternative vision of the Giuliani campaign might have pursued this kind of opportunity very aggressively, by attacking unearned privilege and corporate malfeasance as aggressively as Mayor Giuliani attacked street crime. That hasn’t happened, and I don’t get the impression that it will.