A reversal by Sen. Max Baucus could mean a doubling of the tax that private-equity moguls pay...

A reversal by Sen. Max Baucus could mean a doubling of the tax that private-equity moguls pay when they cash out - and Baucus may have flipped in favor of the tax after hearing Blackstone's (BX) Steve Schwarzman compare new P-E taxes to Hitler's invasion of Poland. The Enterprise Value Tax could raise $6B more over the next 10 years.

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Comments (4)
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
    Just tax the PE firms like every other business and get it over with.
    9 Sep 2010, 01:11 PM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
    Long long overdue. There is absolutely no reason that PE partners should pay 15% income tax while everyone else in their income bracket pays 36% or whatever the top rate will be.


    Shuffling papers is not a job category that deserves special tax status. And actually, no job should receive special tax status - this kind of stuff is one of the reasons we have the mess we have.
    9 Sep 2010, 01:38 PM Reply Like
  • Fr33f0rm
    , contributor
    Comments (300) | Send Message
    I agree wholeheartedly David. The tax code should be thrown out the window and replaced with a new document of no more than 50 pages.


    I agree with the stratified income tax but, there should be limits to exemptions. There are a lot of things that the government needs to do but those things should be done in broad strokes not dependent on the nature of employment. Contractors earn more because they have no job security...they don't need special rules...the benefits and liabilities of the trade are included in the price.
    9 Sep 2010, 07:45 PM Reply Like
  • mra1385
    , contributor
    Comments (24) | Send Message
    PE fund managers would argue that their earnings are contingent upon the success of the business, meaning that they are in fact taking the risks of the business owner. As such, they should be subject to the capital gains tax. I dont know how I feel about either argument, but I figured i'd throw that in there.
    9 Sep 2010, 10:08 PM Reply Like
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