Mr. president: ask the treasury department to change their rules to close the carried interest tax loophole.

The ending of the carried interest tax loophole would increase federal revenues over 10 years by anywhere from $18 billion to $150 billion (see http://www.nytimes.com/2016/05/08/business/ending-tax-break-for-ultrawea... for further details). A large portion of hedge fund managers income is from carried interest, which a 1993 Treasury Department ruling made taxable at the lower capital gains rate. But a legal scholar has described that ruling a conversion of labor income into capital gain, an anomaly that was contrary to some generally accepted principles of tax policy. That legal scholar concluded that this loophole is a major factor in income inequality. Treasury can close the loophole without Congressional action, and add much needed revenue.