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Funds Can't Find Friends in Anti-Tax Fight

As Senate starts tax hearings, masters of the universe find they're short on pals

By Peter Fearon,  Newser Staff

Posted Jul 11, 2007 9:01 AM CDT

(Newser) – Wall Street's hedge-fund and private-equity titans are looking for allies in their fight to prevent a tax hike on profits—but they're having trouble recruiting, today's Journal reports. As the first Senate hearings on the proposed hikes get under way, representatives from venture capital, public pension funds, and investment firms are seeking to distance themselves from their lightning-rod siblings.

Other industries don't want to risk the additional congressional attention that an alliance might draw, and that's leaving a hodgepodge of private equity and hedge fund types to wage their own PR battle. They call the proposed hike—which could raise taxes on profits by as much as 20%—an "investment tax" that will affect everything from pensions to low-income housing.

Traders crowd the floor at the post that handles Blackstone Group LP at the New York Stock Exchange as they wait for the stock to open on the initial public offering, Friday, June 22, 2007. Blackstone Group LP, the investment firm known for making billion-dollar bets to buy huge companies...
Traders crowd the floor at the post that handles Blackstone Group LP at the New York Stock Exchange as they wait for the stock to open on the initial public offering, Friday, June 22, 2007. Blackstone...   (Associated Press)
Traders crowd the floor at the post that handles Blackstone Group LP at the New York Stock Exchange as they wait for the stock to open on the initial public offering, Friday, June 22, 2007. Blackstone Group LP, the investment firm known for making billion-dollar bets to buy huge companies...
Traders crowd the floor at the post that handles Blackstone Group LP at the New York Stock Exchange as they wait for the stock to open on the initial public offering, Friday, June 22, 2007. Blackstone...   (Associated Press)
This handout picture shows US buyout king Henry Kravis speaking...
This handout picture shows US buyout king Henry Kravis speaking...   (Getty Images (by Event))
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)
In this file photo released by The Blackstone Group, Peter Peterson, the senior chairman of The Blackstone Group is shown. Blackstone Group LP, the private-equity powerhouse that controls corporate names like Universal Studios Orlando and Madame Tussaud's, is just hours away from finalizing terms to bring the firm public. The...
In this file photo released by The Blackstone Group, Peter Peterson, the senior chairman of The Blackstone Group is shown. Blackstone Group LP, the private-equity powerhouse that controls corporate names...   (Associated Press)
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