"We need to make sure that government is leaving the industry alone," said Rubenstein.That means keeping PEU's preferred tax status and even a name change, long advised by Rubenstein.
Reuters reported the corporate tax rate on private equity firms is half that of non-investment companies and citizens. Over a five year period The Carlyle Group paid 1% in annual taxes. I didn't realize citizens only had to pay 2%.
The most politically connected PEU pays a mere 1%. That shows what influence billions can buy.
Update 11-25-11: They also plan to help China equal the U.S. in financial power, which happens to be a threat, at least in one Carlyle Group Managing Director's eyes.