The proposal to tax private-equity managers’ fees as income rather than at the lower capital gains rate -- known as carried interest -- has been one of the
The proposal to tax private-equity managers’ fees as income rather than at the lower capital gains rate — known as “carried interest” — has been one of the hottest issues on Congress’ plate since it was first proposed nearly two years ago. One veteran K Streeter called it “probably the most lobbied tax provision” since Ronald Reagan’s massive tax reform plan first broke 23 years ago.
But as President Obama prepares to use higher taxation of “carried interest” as a revenue-raiser to help pay for health care reform while paring down the deficit, is it possible that private-equity giants could be spending *less *money on lobbying Congress to preserve their pet tax break?
The Washington Independent analyzed lobbying spending by the top 10 players in the private-equity world (according to Private Equity International’s most recent top 50 list) to see how much K Street cash the firms were burning as “carried interest” reform moves closer to reality. And incredibly, the $2.5 million spent by these 10 firms during the first quarter of 2009 was notably lower than their spending for the last quarter of 2008 ($4.9 million) and the third quarter of 2008 ($3.6 million).
What gives? Could private equity companies be spending less out of an acceptance that taxation of “carried interest” is inevitably going to become law this year — or is Treasury Secretary Tim Geithner’s “public-private partnership” enough of a gift to the industry to keep private investors placid and happy?
Here’s one answer: the Private Equity Council, formed in late 2006 to serve as the industry’s trade association in D.C., reported a slight uptick in lobbying spending early this year after its expenditures remained steady in 2008. Perhaps private-equity giants can afford to trim their individual K Street bills now that their trade group has become a firmly established player in the capital.
Pentagon Shooter Exploited Gun-Show Loophole
John Patrick Bedell, who shot and wounded two police officers near the Pentagon earlier this month, bought at least one of his 9 mm guns at a Nevada gun show,
MA-Sen: 150 Conservative Bloggers Fan Out, Looking for Scandals
BOSTON -- The mysterious Election Journal blog, which first released the infamous 2008 video of two bumbling New Black Panther Party members waving nightsticks
MA-Sen: Brown Wins
BOSTON -- At 9:20, the first rumors of Scott Brown’s victory in the Massachusetts Senate race started to work around the room. A moment later, Doug Flutie
MA-Sen: 66 to 19
BOSTON -- That, via Alex Isenstadt and Josh Kraushaar, is the number that defined the Massachusetts Senate race more than anything else. From the primary
MA-Sen: A Text Message From Scott Brown
BOSTON -- Having signed up for Scott Brown’s text message service for election day, I just got this text: Are you about to have lunch? It’s a great time to
MA-Sen: Out-of-Staters for Brown
BOSTON -- A surprising discovery at yesterday’s People’s Rally in Worcester was just how many people had traveled into the state to assist, in whatever way,
MA-Sen Photos: ‘Paint the Town Red! Croakley’s Dead!’
Below are some photos of yesterday’s People’s Rally in Worcester, the rally that Brown held to counter-program the Obama rally in Boston. The crush of
Menendez, Lautenberg to Continue BP-Lockerbie Investigation
Sens. Robert Menendez and Frank Lautenberg, both New Jersey Democrats, will continue to seek details about BP’s alleged involvement in the release last year of
Net Investors Bullish on Palin’s Prospects for Staying on Ticket
Just for fun, the Internet prediction Website Intrade has opened a contract on whether Alaska Gov. Sarah Palin will be withdrawn as McCain’s running mate.
No Experience Necessary
Gov. Sarah Palin’s a middle-class hockey mom, but does that really qualify her to be vice president?