Bill Pascrell Ending Tax Giveaway Act

This bill would change how certain investment partnership interests are taxed, specifically targeting interests held by people who provide investment management services to partnerships. It would require that gains from these interests be treated as ordinary income (not capital gains) and losses as ordinary losses (not capital losses), with limitations on how much loss can be claimed in any year. The bill would affect investment professionals and firms that use partnership structures to receive compensation for investment management services, particularly those who currently benefit from capital gains tax treatment. It also creates a 40% penalty for underpayments related to avoiding these tax rules. The changes would apply to partnership interests transferred after the bill's enactment date, with specific rules for calculating gains and losses.