Eric Cantor Hedge Funds
Cantor: Ally to Hedge Funds and Private Equity in Debt Talks
As the ratings agencies threaten to downgrade the United States' credit rating, Wall Street is bracing for the fallout if a deal is not reached, but at least for the moment it looks like hedge funds and private equity firms will be spared--largely thanks to Eric Cantor.
Among the White House’s top demands for new revenue are changes in the tax code affecting hedge funds, private equity firms and real estate partnerships, which would raise an estimated $20 billion over 10 years.
For the past four years, Cantor has taken the lead in the House on fighting the same changes. He also has been one of the top recipients of contributions from those industries — last year, his two fundraising committees received nearly $2 million from securities and investment firms and real estate companies, more than double the figure for Boehner (R-Ohio).
The hedge fund and private equity proposals were at the center of Cantor’s break with Biden’s team. Since then, the prospect for any immediate tax increases has declined, with the focus turning instead to a package based on spending cuts, with broader tax reform postponed.