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Private Equity Taxes: The Capitol Hill Tax Clash Heats Up

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Both houses of Congress came back into session after the holiday weekend and on the top of their agendas are separate proposals to increase the taxes on private equity firms. Today both the Senate and the House of Representatives will hold major hearings to discuss the tax hikes.
The witness lists for today's hearings include both Bruce Rosenblum of the Carlyle Group, Russell Read, the chief investment officer of CalPERS and Victor Fleischer, the University of Illinois law professor who is sometimes called the intellectual godfather of private equity tax hikes.
Meanwhile, special interest lobbying groups are lining up both for and against the tax hike. Yesterday two groups announced their opposition, and one labor dominated pension fund trade group switched sides to support the move. In opposition we have the Chamber of Commerce and the Access to Capital Coalition, a group concentrated on encouraging access to capital for businesses owned by minorities and women. The latter group includes Magic Johnson.
The flip flopping pension fund group is the National Conference on Public Employee Retirement Systems. Earlier it had come out against the proposed hikes but now has said it won't oppose them.
Big Day in Washington for Carried Interest Debate [New York Times]
Private Partnership Tax Fight Heats Up [New York Post]