Reuters reports that "five Democrats" wrote a letter to Senate Finance Committee Chair Max Bacus seeking an exemption for venture capital in the proposed 15% tax loophole closure being discussed as part of the financial reform package.
http://www.reuters.com/...
the five nameless Dems are quoted: "Removing the capital gains tax status for the carried interest earned by these venture capitalists when companies are successful will be a harmful disincentive,"
This loophole has allowed Hedge Fund Managers alone to pocket $20B in extra income in 2009, and its application to venture capital funds and real estate master limited partnerships (MLPs) is estimated to remove almost $2.5T annually from tax revenues (!) Hmmm 20% increase = $2.5T, so total income = $12.5T, or 86% of total US GDP...
Who are these 5 craven Dems?
Patty Murray of Washington,
Mark Warner of Virginia,
Bob Casey of Pennsylvania
Jeanne Shaheen of New Hampshire
and...
Turncoat Scott (Lay it Down) Brown!
http://www.bloomberg.com/...
while "White House budget director Peter Orszag predicted Congress within weeks would approve higher taxes on managers of private equity firms, real estate funds, and other investment partnerships"
http://www.boston.com/...
I predict it will be a cold day in Hell before the Carried interest loophole gets closed