The "Carried Interest Fairness Act of 2025" aims to reform the tax treatment of income earned through pass-through entities, particularly those involved in investment management services. The legislation seeks to ensure that income from these partnerships is taxed more equitably, primarily by reclassifying certain earnings as ordinary income instead of capital gains, which typically enjoy lower tax rates. Key provisions of the act include a new method for valuing partnership interests when transferred as part of service compensation.