Politicians Red and Blue love PEU (private equity underwriters) and increasingly, more are one. Congress lives this with their new tax bill which saves PEU preferred "carried interest" taxation, a highly unpopular tax dodge. Both parties combined to do one better, allow greater deductibility of burdensome interest expense. The greed and leverage boys make money by saddling affiliates with debt, often taking those borrowings and paying themselves a handsome dividend/special distribution.
The Lever reported:
...an accounting maneuver included in the bill creates more lenient standards for calculating the deduction as a share of total taxable income, which could boost private equity firms’ tax savings by an estimated 15 percent, netting the companies billions of dollars.Billions more for politically connected billionaire PEU Legends. There is no people's House. It belongs to the PEUples.
