My fellow venture capitalists and private equity investors are paying close attention to the heated election-year rhetoric about the future of “carried interest,” which is the performance fee we charge to manage other people’s money. Carried interest is the fund manager’s share of the earnings from a profitable investment, normally paid on top of a much smaller management fee.

It’s also a subject of increasing political disfavor. Over the past year, every major presidential candidate — from Jeb Bush and Donald J. Trump to Hillary Clinton and Bernie Sanders — has called for an end to a tax loophole that exists for carried interest. Mrs. Clinton has vowed that if Congress does not close the loophole, as president she would ask the Treasury Department to use its regulatory authority to do so.

Ultimately, the controversy has to do with tax fairness, or the lack thereof. Instead of being taxed as wages or commissions earned, carried interest is currently taxed as if it were a personal investment, or capital gains. This gives us a significant tax advantage since the capital gains tax rate is about 50 percent lower than the top rate on ordinary income.

When I started my first fund, Alan Patricof Associates, in 1970, I vividly remember my accountant telling me about my first sale of an investment: “We’re going to treat this as capital gain, but sooner or later, it will be characterized as ordinary income.”