The real likelihood of higher taxes on rate hikes

The private equity industry is certainly mobilizing. Their footprint is being felt in Washington, as evidenced by Henry Kravis paying a visit to key Congressmen. So what are the chances the industry will prevail. Pretty good really. The Senate has been anything but enthusiastic about tax hikes, and the industry appears to be targeting members of Congress who depend on the industry (or really any partnership) or have benefited via job gains. John Kerry told the AP that he had to weigh the revenue against the effects on venture capital flows. All in all, any bill will have to be narrowly drawn or you will invoke the wrath of all partnership-oriented industries. Right now, I would say the industry's chances of escaping higher taxes are pretty good. But this far from over.

For more:
- here's the AP article