Blue Team political consultant James Carville named the devastating moment Kamala Harris lost the Presidential race. BusinessWeek reported:
A Tax Hike Has Carlyle Up in Arms6-21-2010For David Rubenstein, the founder of private equity firm Carlyle Group, the prospect of losing a three-year fight over legislation that would force him to pay higher income taxes was bad enough. Then, in late May, he discovered a clause in the same bill that would more than double the taxes he would owe if he sold his stake in the firm or took it public. Rubenstein became one of several high-profile private equity executives who personally took to the Capitol's corridors to persuade lawmakers to remove the clause. Rubenstein visited Senator Max Baucus (D-Mont.), the Finance Committee chairman whose panel oversees all tax legislation. He also got an audience with Senate Majority Leader Harry Reid (D-Nev.). Other private equity chiefs, including Glenn Hutchins, co-founder of Silver Lake Financial Management, and David Bonderman, founding partner of buyout firm TPG, also called on lawmakers.The measure with the tax increases passed the House in May and is stalled in the Senate by lawmakers worried about adding to the deficit. Meanwhile, the lobbying by private equity executives may be having some effect. Senator Evan Bayh (D-Ind.) objects to the proposal's impact on sales of buyout firms and other partnerships.
The head of the private equity trade group called the measure "discriminatory and inequitable." This was shortly after the Supreme Court granted money free speech rights.
Baucus dropped the provision and private equity underwriters (PEU) still enjoy their preferred taxation today. No end is in sight. For once, neither the Reds or Blues promised the voting class that they would take it on that Herculean task.
Politicians Red and Blue love PEU and increasingly, more are one (including Evan Bayh at Apollo).