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Carried Interest Tax Senate

Carried Interest Tax Senate

Senate Again Considering Changing Carried Interest Tax

It may feel like a tired warning to observers of the hedge fund and private equity industries but for those who would be effected by a change to carried interest taxation--all those working in either sphere--it is a big concern.  The U.S. Congress appears ready to tackle the tax treatment of carried interest, according to congressional sources.

Private equity firms and hedge funds have been fighting off the legislation for years but it appears that the idea may be gaining momentum as a way to reduce the federal debt. As some of you may recall, a proposal to change the tax treatment was again passed by the House of Representatives but lacked enough Senate support to go further.  Now, the Senate seems more interested in increasing the tax on carried interest because of the revenue it would bring in. 


A proposal to change the tax treatment of fund managers' profits known as "carried interest" last year passed the U.S. House of Representatives, which has approved such measures several times only to have them die in the U.S. Senate.
But as lawmakers run out of revenue to offset things such as a pending bill in the Senate to extend unemployment insurance, the idea is getting a second look by once skeptical senators, congressional aides said.
The Senate last month approved a $140 billion bill to extend jobless benefits through the end of the year and renew a series of popular tax breaks. That bill also closed several tax loopholes to bring down the costs, but the House then used some of those revenues in its healthcare overhaul, hence the need for more revenue.  Source

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Link to This Resource: Carried Interest Tax Senate

http://richard-wilson.blogspot.com/2010/04/carried-interest-tax-senate.html
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