Higher taxes coming for private equity gains?

Private equity firms are in an understandable dither over the prospect that Uncle Sam may someday tax their phenomenal "carry" on investments as income, not capital gains. That would be a huge difference, 15 percent vs. 35 percent. Not sure whether this would apply to hedge funds as well. In one sense, this is a reflection of a domestic backlash we've discussed recently. There may be some populist anger stirring out there, a sense that these deals are bad for shareholders and perhaps even the common guy. The TXU deal could be a turning point, given the notion that the private equity guys got the better end of the negotiations. The big private equity firms recently started a lobbying group, the Private Equity Council--this may be its first big issue.

For more:
- here's the New York Times article