Blackstone Pushes to Delay Tax Increase Bill

If measure won't die, buyout giant wants 10-year grace period
By Sam Gale Rosen,  Newser Staff
Posted Oct 23, 2007 12:40 PM CDT
Sen. Charles Grassley, R-Iowa, speaks in this 2006 file photo in Des Moines, Iowa. (AP Photo/Matthew Putney, File)   (Associated Press)
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(Newser) – If Blackstone and other buyout firms can't kill a proposed bill that would increase their taxes, they'll try for a 10-year delay in enacting it. Under pressure from lobbyists, lawmakers are discussing doubling the proposed 5-year grace period, Bloomberg reports. The legislation, introduced before Blackstone went public in June, has been the target of over $5 million worth of lobbying by private equity firms.

Some lawmakers, including John Kerry and Charles Schumer, have expressed concerns over the bill, which subjects private equity firms and hedge funds to the 35% corporate tax rate. The lengthened grace period might make it more palatable. Cosponsor Max Baucus has said he is "willing to consider changes to the transition period, and that remains true," says the congressman's spokesman.