The debate on taxing carried interest has resurfaced, with President Trump proposing to classify it as ordinary income instead of capital gains. This suggestion, aimed at funding a tax cut, faces strong opposition from venture capitalists and private equity professionals, who argue that higher taxes would harm long-term investments and innovation. They emphasize that carried interest incentivizes risk-taking and economic growth. The National Venture Capital Association also opposes the change, warning it could disrupt investments in emerging technologies. Past attempts to reform carried interest taxation have largely failed, and concerns persist about its impact on the industry’s attractiveness and operations.