Friday, August 5, 2022

PEU Carried Interest Saved Again!

The greed and leverage boys favored "carried interest" taxation remains thanks to Senator Kyrsten Sinema (Blue Team-Arizona).  WaPo reported:

Sinema said Democrats had “agreed to remove” a key tax policy targeting wealthy investors that aimed to address what is known as the “carried interest loophole.”

Blue Corporacrat Sinema's backers include The Carlyle Group and KKR.  Carlyle Group co-founder David Rubenstein called the tax system a disgrace in 2012 for allowing such an inequity.  Two faced Rubenstein fought hard for decades to keep his preferred private equity underwriter (PEU) taxation, deeply unpopular with the general public. 

Private equity raised rents and evicted tenants of trailer parks, Brooklyn apartment buildings and can't get enough suburban homes (where rents are soaring).  The greed and leverage boys bought citizens surprise medical billing and regularly add costs to an already ridiculously expensive healthcare system.  One cannot even die on hospice without private equity taking its final share.

So why can't Republicans and Democrats who've "long opposed" the carried interest loophole get together after an election and eliminate the break?

This "tax disgrace" remains in place as Politicians Red and Blue love PEU and increasingly, more are one.

Sinema should have lifetime PEU employment after trashing public will, which has long wanted the wealthy to pay their fair share of taxes.  

Did the Senator call Mr. Rubenstein at the Washington Economic Club to share that she alone would save the billionaire PEU boys?  Did he personally thank Sinema for "dis" grace?

Update:  Others noted Sinema's increased odds of PEU employment post "public oligarchy service."

Update 8-7-22:  Insulin dependent diabetics younger than Medicare age did not get the political aid extended to the greed and leverage boys.  No savings for you!

Senator Kyrsten Sinema (Blue Team-Arizona) backed a Republican amendment shielding businesses that rely on capital investment from private equity groups from the 15 percent corporate minimum tax.  Politicians Red and Blue love PEU. 

The PE lobby did double duty preserving carried interest and exempting PE affiliates from the 15% minimum corporate income tax.  Someone noticed!

Blankfein's son Alex worked for The Carlyle Group.  Alex is now a Principal at Redbird Capital Partners.

Update 8-9-22:  Insider noticed Sinema's love for the PEU boys.  Consummate insider Larry Summers noted:

"There is no legitimate public policy argument for the maintenance of carried interest or @SenJohnThune /@SenatorSinema's private equity carve out from the bill."

FT reported:

Sinema has received more than half a million dollars in campaign donations from private equity group executives in this election cycle alone, representing about 10% of her fundraising from individual donors. This includes individual donations totaling $54,900 from executives at KKR, $35,000 from Carlyle, $27,300 from Apollo, $24,500 from Crow Holdings Capital and $23,300 from Riverside Partners.

She will never have to sleep in a car again.

Update 8-10-22:  Larry Summers is appalled by the Senate's catering to the PEU boys with tax carve outs.

Update 8-11-22:  A former BlackRock executive blew holes in Senator Sinema's rationale for siding with the greed and leverage boys.

Update 8-14-22:  Senator Kyrsten Sinema received "nearly $1 million over the past year from private equity professionals, hedge fund managers and venture capitalists whose taxes would have increased under the plan."

Update 8-22-22:  Blue Corporacrat Sinema never said the words "carried interest" in public as she water carried for the PEU boys.

Update 9-2-22:  I found Senator Sinema's Arizona car wash PEU.  Quick Quack Carwash is sponsored by Seidler Equity Partners and some of its debt was underwritten by Golub Capital.  Senator Sinema may not drive dirty but she votes PEU.

Update 12-9-22:  Sinema hung her independent shingle to drum up funding from the billionaire boys.

Update 1-24-23:  Sinema is fresh from attending the World Inequality Forum in Davos and rubbing elbows with the billion class.  It turns out the PEU boys were very generous with the Independent Senator after she saved their preferred taxation.  

Senator Krysten Sinema received at least $526,000 from donors in the private equity, hedge fund, and venture capital industries after killing a bill closing tax loopholes for private equity.

It sounds like the bidding has already started for her future services. 

Update 2-16-23:  Thirteen years ago Senator Max Baucus dropped a provision that would have taxed the greed and leverage boys more appropriately.

Baucus went on to deform healthcare for the PEU boys before stepping down from the Senate and serving as U.S. ambassador to China where he helped Hunter Biden form a $1 billion PEU with a large China bank.  

Max began carrying the PEU water in summer 2007.

Update 3-9-23:  The Biden budget proposal includes elimination of carried interest preferred taxation.  The measure has zero chance of passing given all the political PEU love in Congress and the White House.  It makes nice theater.

Update 10-24-23:  Kyrsten Sinema said she doesn't care if she loses reelection because she 'saved the Senate by myself' and can go serve 'on any board I want to.'  For saving PEU preferred taxation I'll wager she gets more than a board seat.