Tuesday, October 14, 2008

McCain Proposes Carlyle Group's Tax Wish List

Republican Presidential candidate John McCain delivered a tax plan that mirrors one requested in September 2006. The Senate Finance Committee conducted hearings on taxation. Charles Rossotti, Senior Adviser for the Carlyle Group, asked for capital gains taxes at 8.25% and corporate taxes of 25%. McCain proposes 7.5% for capital gains and Charles' 25% for business income.

While tesitifying as an ex-IRS Commissioner, Charles made no mention of his private equity employment. Mr. Rossotti has been with The Carlyle Group since 2003. At the time of his testimony, Charles had 3 1/2 years in Carlyle tenure.

This morning John McCain's economic advisers rolled out something close to Carlyle's wish list. It's a private equity underwriter's dream. Flush with billions in cash and ready to put it to work in the financial/insurance sector, McCain's tax cuts could help guarantee their string of SuperReturns.

It's a PEU economy, sponsored by the government industrial monstrosity, Eisenhower's military industrial complex on steroids.