Private equity tax hike proposal fizzles

I had been predicting that the much-feared hike on private equity gains would never really materialize. And I was right, not to sound too cocky. According to the Washington Post, private-equity firms have been informed that a tax-hike proposal will not get through the Senate this year. So the tax battle for the year is over, with the private equity firms winning. The issue remains whether it will re-ignite as an issue next year. My sense is that it will not. The major candidates do not want to make it an issue, and there is a whole lot of lobby power being directed toward preserving the low-tax treatment. But let it be said, the mere whiff off a tax change scared the bejeezus out of the industry. We may see the likes of Henry Kravis on Capitol Hill again, as a preventative measure.

For more:
- here's the Post article

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