Wednesday, September 05, 2007
Minority Interest in Monetary Environment
Big buyout firms, represented by the Private Equity Council (PEC), are fighting a proposal to raise the tax rate on private equity profits. And they are getting help from a new minority group coalition called the Access To Capital Coalition (ACC) that also opposes raising the tax rate on carried interest, which comprises most of private equity fund managers’ earnings. The ACC receives funding from the PEC and includes Magic Johnson and Robert Johnson.
House and Senate bills are currently pending that would more than double the tax rate on carried interest from the capital gains level of 15 percent to the income tax level of 35 percent. Rep. Charles E. Rangel, the head of the Ways and Means Committee supports the legislation (thus we guess the need for the ACC). No new taxes. (NYT, PRNewsWire)