A proposed tax hike on some of America's wealthiest investors isn't likely to happen this year, as Senate Democrats say they're shelving a bill that would have eliminated the special tax rate enjoyed by private-equity managers. Senate Majority Leader Harry Reid says a crowded legislative calendar makes considering the bill—the object of a massive lobbying effort—impossible, the Washington Post reports.
The bill would have doubled the tax rate for private-equity managers, whose profits are taxed at a 15% capital-gains rate, rather than the 35% rate paid on regular income. Given the hundreds of millions many of them earn, it would have raised $6 billion a year in federal revenue, the Post estimates. (Read more Senate stories.)