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AP Photo/Manuel Balce Ceneta, File

As the corporate tax battle begins to heat up in D.C., a group led by conservative tax activist Grover Norquist is staking out ground against one of Donald Trump's campaign promises: To close the carried interest tax loophole.

But its argument doesn't hold water.

Facts matter: What is carried interest and how is it taxed?

What Norquist says: Americans for Tax Reform wrote on Tuesday that carried interest should continue to be treated as a capital gain. In addition to arguing that carried interest is "indistinguishable from any other type of capital," it adds:

"While supporters of higher taxes on carried interest capital gains say it takes aim at 'hedge fund guys,' it would also hurt pension funds, charities, and colleges that depend on these investment partnerships as part of their savings goals. In addition, small businesses would find themselves increasingly shut out from investment money available to them from these partnerships."

Oh really? For starters, none of the tax increase would directly affect pension funds, charities or colleges (most of which are tax exempt anyway). So perhaps this would be an indirect cost, in that successful hedge fund and private equity fund managers will take their balls and go home. If so, ATR provides no evidence to support the claim.

I recall asking this very question a couple of years ago to my tens of thousands of newsletter readers in the PE/VC space, and I got exactly two affirmative replies. And before you dismiss the lack of response, recall that top capital gains rate increases from a few years back (from 15% to 20%) didn't put a dent in new fund formation.

Further comment: Axios reached out to the post's author, Alexander Hendrie, but he did not respond.

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Technical glitch in Facebook's ad tools creates political firestorm

Facebook CEO Mark Zuckerberg. Photo: SOPA Images / Contributor

Facebook said late Thursday that a mix of "technical problems" and confusion among advertisers around its new political ad ban rules, caused issues affecting ad campaigns of both parties.

Why it matters: A report out Thursday morning suggested the ad tools were causing campaign ads, even those that adhered to Facebook's new rules, to be paused. Very quickly, political campaigners began asserting the tech giant was enforcing policies in a way that was biased against their campaigns.

Updated 49 mins ago - Politics & Policy

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Illustration: Sarah Grillo/Axios

  1. Health: Large coronavirus outbreaks leading to high death rates — Coronavirus cases are at an all-time high ahead of Election Day — U.S. tops 88,000 COVID-19 cases, setting new single-day record.
  2. Politics: States beg for Warp Speed billions.
  3. World: Taiwan reaches a record 200 days with no local coronavirus cases.
  4. 🎧Podcast: The vaccine race turns toward nationalism.
1 hour ago - Health

States beg for Warp Speed billions

A COVID-19 drive-thru testing center yesterday at Hard Rock Stadium in Miami Gardens. Photo: David Santiago/Miami Herald via AP

Operation Warp Speed has an Achilles' heel: States need billions to distribute vaccines — and many say they don't have the cash.

Why it matters: The first emergency use authorization could come as soon as next month, but vaccines require funding for workers, shipping and handling, and for reserving spaces for vaccination sites.