FT article:
Lobby groups shun private equity tax fight
By Stephanie Kirchgaessner in Washington
Published: July 29 2007 22:03 | Last updated: July 29 2007 22:03
Two influential business lobby groups are staying out of the fight over the taxation of the private equity industry, leaving buy-out chiefs with few powerful corporate allies to help their case in Washington.
The Business Roundtable, an association of more than 100 top chief executives, and the Financial Services Forum, which represents the banking industry, have decided against taking a position on two proposals in Congress that could significantly raise taxes for private equity groups and their executives.
source : http://www.ft.com/cms/s/e1be40f2-3de8-11dc-8f6a-0000779fd2ac,Authorised=false.html
New developpements published in FT:
Private equity ‘will weather tax storm’
http://www.ft.com/cms/s/fb7c6d1c-3fae-11dc-b034-0000779fd2ac,Authorised=false.html
By Stephanie Kirchgaessner in Washington
Published: August 1 2007 01:10 | Last updated: August 1 2007 01:10
Buy-out groups could find ways to get round a proposed US tax rise by developing new financing structures or by offsetting some of the burden by cutting returns to pension funds and other investors, a private-equity executive said on Tuesday.
Bruce Rosenblum, chairman of the Private Equity Council and a top executive at Carlyle, said big groups such as his would be able to “weather the storm” if Congress passed a bill that would greatly increase tax on private-equity and hedge-fund managers’ earnings.