Private-equity firms have spent millions of dollars lobbying against a proposal that would tax private-equity managers at 35 percent, the top rate paid on regular income.
The Washington Post's Jeff Birnbaum says the managers currently pay carried interest tax at 15 percent. When a bill to increase the tax rate was introduced, the private equity firms hired an army of lobbyists to fight the proposal.
For now, the lobbying effort is working, Birnbaum says. An unnamed lobbyists says Senate Majority Leader Harry Reid (D-NV) has assured the private-equity firms the bill will not make it through the Senate this year. And with the elections coming up, it is unlikely that Congress would be willing to raise taxes next year, either.
Birnbaum, who reported this story, talks to Alex Chadwick.
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