Saturday, September 2, 2017

PEU Carried Interest Thank You Letter

Dear Congress,

This Labor Day weekend we would like to thank you for not eliminating the "billionaire tax break" for the last ten years.  The public dislikes our paying taxes at a far cheaper rate than many citizens.  Sensational news reports have used secretaries and gardeners in their examples.

The first run at eliminating our preferred carried interest taxation came in 2007.  You kindly entertained Carlyle Group co-founder David Rubenstein, Blackstone's Stephen Schwarzman, KKR's Henry Kravis and  David Bonderman of TPG.  You received the message sent by twenty lobbying firms for which we spent $4.9 million.  Our case was and is:

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The next serious run at eliminating the loophole came in 2010.  Indiana Senator Evan Bayh went from protecting the billionaire tax to working for Leon Black's Apollo Global.  The public didn't know that many of you would retire from public service only to work for us.

Estimates for eliminating private equity's preferred taxation ranged from $25 to $27 billion over ten years.  Thanks to your inaction that money stayed in our pockets.  We put it to good use by giving our secretaries and gardeners an average wage increase of 1-2% per year over the period, raises that failed to keep up with inflation..

We appreciate your letting us buy a reprieve in 2007 that continues today.  Given the number of private equity underwriters (PEU) in President Trump's cabinet we trust you and the White House still have our backs.  In gratitude,

The PEU Boys (Summer 2017)