We've noted before that there are some class-warfare angles that might resonate in an election year. Newsweek's article picks up the theme. It makes clear that "the very rich in America pay taxes at a lower rate than most working people, and, due to a wrinkle in the tax code, private-equity partners enjoy some of the lowest tax rates of all." The industry would be wise to fund an all-out PR campaign now at the grass roots level. Certainly, they could make a case that they have enhanced the well-being of certain companies and perhaps even created jobs. The industry would be wise to finance some charities. All that said, while the PR hit may hurt, it will not hurt in the pocketbook unless Congress acts. That remains an iffy proposition. A lot of politicians have really benefited from private equity money.

Read more:
- in this article