Monday, November 27, 2017

Carried Interest Remains!

Congressional' tax reform proposals carried water for private equity underwriters by preserving lower carried interest taxation.  Presidential candidates Barack Obama (Blue team) and Donald Trump (Red team) both ran on eliminating what's became known as the billionaire's loophole.  Under tax reform it remains large enough for PEU founders to fly their private jets through.

Washington would have it no other way as politicians Red and Blue love PEU.

Update 12-3-17:  The Hill reported more than 6,000 lobbyists worked to shape tax reform.  The story did not indicate how many were PEU lobbyists.

Update 12-10-17:  Trump's tax plan has Kansas roots.   Will it turn much of the U.S. into dust in the wind?

Update 12-22-17:  Fox Business reported " Bannon's advisers say he found it impossible to convince members of Congress to take away the tax benefit from the powerful private equity business. This is the same line of reasoning that was recently used by Trump’s National Economic Council Director Gary Cohn, who said the private equity lobby was too powerful for the White House to compete with, and that he and others behind the new tax bill unsuccessfully tried to eliminate the deduction “25 times.”