carried interest---Compensation
for the captains carrying a trade through global waters/infrastructure with
safety and profitability for their “employers”. It is taxed at rates under that
of earned wages, and it is not taxable until it actually is “cashed in”. It is the
incentive behind the liquidity trap,
at least according to legend, landing the globe’s capital in holes on the beach
in treasure chests owned by private equity
and hedge funds who,
along with their “employers”, seek out those skilled in global tax inversion
procedures. A few of the captains and firms involved do return the capital and
use it to invest in things the mates want/need. Other captains and firms do not,
continuously seek horrendous employment conditions for the majority of the
crew, and take huge loans to avoid cashing in the booty.