PE shops escape tax man this year, but he’s coming

PE shops escape tax man this year, but he’s coming.

"Rangel’s $1 trillion ‘mother of all tax reform bills’ is close to seeing light of day so that long battle for next year can begin.

All indications are that a controversial bill to tax private equity carried interest as regular income will have to wait until 2008. But for lawmakers and corporate governance watchdogs, carried interest is just the start of a campaign to make life miserable—or at least more expensive—for the private equity crowd.

The bill would increase the current 15% tax on carried interest to as much as 35% for private equity firms, venture capitalists, real estate trusts, hedge funds and numerous oil, gas and commodity investment vehicles."

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