close that loophole

Investment partnerships are "bristling" at the idea that their compensation should be treated as income, not capital gains - in other words, that they will face the tax brackets you and I do, not the 15% capital gain rate.

"Obama's plan would essentially treat investors who use their own capital to buy and sell businesses differently than the managers of the partnerships. Investors would be taxed at the capital gains rate; managers would be liable for income taxes. "

Sounds reasonable to me. It was a big fat juicy loophole. And I'm sure the managers can get by on the relative pittances they would have to endure if they pay the higher taxes.