Tuesday, October 9, 2007
RIP - Carried Interest Tax Hike
According to Senate Majority Leader Harry M. Reid, via the Washington Post, Congress will not be considering the tax hike on carried interest earned by private equity firms. In one meeting with industry representatives last month, Reid said the private-equity tax plan would not be considered in the Senate this year, according to a participant.
Reid's spokesman, Jim Manley, reflected that doubt in an e-mailed response to a question yesterday: "Given the difficulty in getting any legislation through the Senate and the little time left this year for moving other issues important to the American public, it is unclear whether there is sufficient time to address the appropriate tax treatment of private equity firms."
The UK, meanwhile, is moving in the opposite direction. Reuters UK reports that "Chancellor Alistair Darling is set to tighten rules that allow private equity chiefs to pay less tax than many low-paid workers."
Well, that solves Senator Chuck Schumer's problem.
Update: First, Alistair Darling introduced a flat 18 per cent capital gains tax, replacing the 10% taper relief. Secondly, Senator Barack Obama weighs in on the victory for private equity lobbyists, "If there was ever a doubt that Washington lobbyists don't actually represent real Americans, it's the fact that they stopped leaders of both parties from requiring elite investment firms to pay their fair share of taxes..."
Reid's spokesman, Jim Manley, reflected that doubt in an e-mailed response to a question yesterday: "Given the difficulty in getting any legislation through the Senate and the little time left this year for moving other issues important to the American public, it is unclear whether there is sufficient time to address the appropriate tax treatment of private equity firms."
The UK, meanwhile, is moving in the opposite direction. Reuters UK reports that "Chancellor Alistair Darling is set to tighten rules that allow private equity chiefs to pay less tax than many low-paid workers."
Well, that solves Senator Chuck Schumer's problem.
Update: First, Alistair Darling introduced a flat 18 per cent capital gains tax, replacing the 10% taper relief. Secondly, Senator Barack Obama weighs in on the victory for private equity lobbyists, "If there was ever a doubt that Washington lobbyists don't actually represent real Americans, it's the fact that they stopped leaders of both parties from requiring elite investment firms to pay their fair share of taxes..."
Subscribe to Posts [Atom]
