Charlene D. Luke (Florida), Anatomy of a Shakedown: The Carried Interest Case, JOTWELL (February 12, 2026) (reviewing Edward J. McCaffery & Darryll K. Jones, The Curiouser and Curiouser Case of Carried Interests, 66 Ariz. L. Rev. 357 (2024)).

Edward J. McCaffery (USC) and Darryll K. Jones (FAMU) offer an engaging explanation for the lack of progress in closing the carried interest loophole in The Curiouser and Curiouser Case of Carried Interests. This well-known loophole—which has been analyzed extensively in the literature—allows top hedge fund and private equity managers to pay tax on service income at the lower rate afforded long-term capital gains. The article draws on earlier scholarship by each of the co-authors and provides an updated account of the decades-long lack of progress in closing the loophole.

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