Stop Carrying the Interest! A Comparison of U.S. and Chilean Taxation of Private Equity Fund Managers Under International Human Rights Law

Why do we tax? How do we tax? Who should we tax? While asked by almost all of us, these questions are usually answered by a select few. Economists who work in theoretical realities, lawyers full of jargon, and legislators with competing interests all have different answers to those questions. Some might even have different answers depending on who is asking. Beyond the theory and the jargon, however, lies an underlying base of equity and fairness that drives all citizens to ask these questions. This Note will attempt to answer one small piece of these enormous questions by focusing on the taxation of private equity managers in the United States compared with that of Chile, arguing that, while the Chilean government has complied with what little international guidance there is on tax policy, the United States is violating international law by offering preferential treatment for high net-worth private equity managers.