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Wall Street, GOP Team Up on Tax Bill

Proposal would raise tax rate for private-equity profits from 15% to 35%

By Max Brallier,  Newser User

Posted Jun 28, 2007 8:52 AM CDT
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(Newser) – Wall Street stormed Washington yesterday, as more than 70 lobbyists for financial firms met with GOP lawmakers to organize opposition to a bill that would raise the tax rate on private-equity partners. The proposal would require managers at private partnerships to pay the normal income tax rate of up to $35% on their cut of profits, rather than the 15% rate they now enjoy.

Opponents of the bill, including Henry Paulson, the treasury secretary, criticize it for singling out one industry. Supporters, including most Democrats in Congress, say it rectifies special tax treatment that has made private equity principals vastly wealthy. The New York Times reports that a unified front against the bill may be hard to achieve because many Wall Street firms aren't affected by it. 

This handout picture shows US buyout king Henry Kravis speaking...
This handout picture shows US buyout king Henry Kravis speaking...   (Getty Images)
IMG_0655
IMG_0655   ((c) Alex Castell )
The New York Stock Exchange
The New York Stock Exchange   ((c) Alex Castell )
Stephen Schwarzman attends The 39th Annual Museum of Modern Art's Party in the Garden honoring Martin Scorsese, held at the Museum of Modern Art, in this May 15, 2007 file photo in New York. Blackstone Group LP, the private-equity powerhouse that controls corporate names like Universal Studios Orlando and Madame...
Stephen Schwarzman attends The 39th Annual Museum of Modern Art's Party in the Garden honoring Martin Scorsese, held at the Museum of Modern Art, in this May 15, 2007 file photo in New York. Blackstone...   (Associated Press)
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US • Money • Politics

 
private equity • Wall Street • Republican • taxes • GOP • Henry Paulson • finance

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