Wednesday, October 10, 2007

Fair Taxing of PEU Managers Dies in Congress

Private equity underwriters get to keep their preferred taxation on "carried interest" as Congress is too busy to bring a bill to the floor. Those millionaires can breath a sigh of relief and refocus on growing their huge bank accounts, thanks to K Street and the Capital.

Senate Majority Leader Harry Reid, D-Nevada, told numerous folks the issue was dead for 2007. However, according to the Washington Post his official stance is:

"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."

Apparently the appropriate treatment involves hiring lots of lobbyists and funneling campaign cash to the right people. Chuck Schumer, D-New York already showed his Chucky side. Hold your nose folks, something reeks and it's coming from both sides of the aisle...