Carried interest is not going to survive the new era!
If you are conservative you are skeptical of concentrated power. You know the bullying and bossism it can lead to. Republicans should go to the populist right on the issue of bank breakup. Too big to fail is too big to continue. The megabanks have too much power in Washington and too much weight within the financial system. People think the GOP is for the bankers. The GOP should upend this assumption. In this case good policy is good politics.
If you are a conservative you're supposed to be for just treatment of the individual over the demands of concentrated elites. Every individual in America making $400,000 a year or more just got a tax hike that was a blow to the gut. Regular working people are seeing their payroll deductions increase. But private-equity partners who make billions enjoy more favorable tax treatment. Their income is treated for tax purposes as a capital gain, so they're taxed at far lower rates. This is called the carried-interest exemption, and everybody knows it's a big con.
The Republican Party should come out against it in a big way. Let the real rich pay the same percentage the not-actually-rich-but-formally-declared-rich are paying. If the Republicans did this they'd actually be joining the winning side, because carried interest will not survive the new era. If congressional Republicans care about their party they'll want it to get credit for fairness, as opposed to the usual blame for being lackeys of the rich.
Don't confuse conservative Republican propoganda with what they really believe. The rich and big business control the Republican party. They have become a fascist party. Openly disdainful of the poor and completely hostile to government.
Breaking up the big banks won't work because they wouldn't stay broken up. When the financial crisis hit many bank stocks were cheap and TARP money was available. The banks could have been nationalized very cheaply.