Over the past four decades, private equity has become a powerful, and malignant, force in our daily lives. In our May+June 2022 issue, Mother Jones investigates the vulture capitalists chewing up and spitting out American businesses, the politicians enabling them, and the everyday people fighting back. Find the full package here.
For years, Sen. Elizabeth Warren has railed against the excesses of private equity firms, including megadeals that leave companies bankrupt and their workers jobless as fund managers line their pockets with fees and performance bonuses. In 2013, for instance, Warren proposed legislation that would shrink PE’s sway by barring commercial banks—where most Americans hold their money—from investing in the industry. Two years later, she went after what Insider called PE’s “golden goose,” asking the Treasury Department and the IRS to crack down on waivers that allow fund managers to pass off their entire compensation as “carried interest,” which is taxed at a far lower rate than ordinary income.
But her reputation as private equity’s greatest foe in Washington may have been cemented in 2019, when—as a top presidential contender […]
