Key takeaways 

• On September 12th, President Obama released the text of the proposed American Jobs Act of 2011, which includes provisions that would tax carried interest as ordinary income. 
• The carried interest provisions of the bill generally would tax at ordinary income tax rates 100% of carried interest and gain from the sale of carried interest (enterprise value), whereas prior Congressional proposals generally would have treated only 75% of carried interest as ordinary income. 
• The bill would limit the application of the carried interest rules to "investment partnerships," which may protect certain partnerships from inadvertently becoming subject to the carried interest regime.