Private equity firms have avoided taxation on over $1 trillion of income thanks to a loophole, new Oxford research reveals

Rachel Reeves, Shadow Chancellor of the Exchequer, holds up the Fiscal Plan during the launch of Labour's general election manifesto on June 13, 2024 in Manchester, United Kingdom. (Credit: Anthony Devlin—Getty Images)

Calls to tax the world’s richest people are now focusing on another target: the world’s wealthiest private equity firms. 

The largest PE firms in the world have avoided paying income taxes on more than $1 trillion of incentive fees since 2000 alone, according to new research from Oxford University, by making payments in a structure that subjects them to a much lower tax.