There seems to be some lingering confusion over the private equity tax proposal. The bill that has the Private Equity Council up in arms proposes the end of a little-known exemption that allowed the Blackstone Group and possibly Fortress to maintain their partnership status despite being publicly traded (or soon to be). That closed loophole would boost taxes up significantly to the 35 to 40 percent range. That's a huge deal, but you could almost hear a sigh of relief. Many thought something else would be proposed: A change in the way the carry is taxed--no longer at the capital gains rate but at a corporate rate. Fortune suggests that this would have a much bigger impact on the industry--and may even mark the end of a Golden Era. And lo and behold, it may come to pass. See next item.    

For more:
- here's the Fortune article