What the Stock Market Plunge Means for a Deficit Agreement
In some parallel universe, Congress and President Obama would respond to the stock market tumble, the S&P ratings downgrade, and growing public disgust at their toxic inaction on fiscal policy in a...
View ArticleCarlyle, Bain Capital, and the Tax Treatment of “The Carry”
The on-again, off-again battle over how to tax the compensation of private equity managers may be on again, thanks to the confluence of two seemingly unrelated events. The first is the controversy over...
View ArticlePaying Taxes on Capital Gains Early: How Investors are Avoiding Tax Hikes
Normally, at the end of each year, investors sell stock (and other assets) to recognize losses to offset gains recognized earlier in the year. Sometimes they do it the other way around, harvesting...
View ArticleWhy the IRS Should be Taxing the Profits of Private Equity Funds as Ordinary...
For years, the battle over carried interest has focused on how to tax the compensation of private equity managers. But a careful reading of the law suggests that all the business profits of these...
View ArticleDo Private Equity Firms and their Partners Owe Ordinary Income Tax Under...
For a decade, Congress has been debating how to tax managers of private equity firms. The argument is pretty familiar to tax wonks: Should these partners treat this compensation (commonly called...
View ArticleCourt of Appeals Finds a Trade or Business: Could this Mean Higher Taxes for...
The First Circuit U.S. Court of Appeals ruled yesterday that private equity funds are engaged in a trade or business under the Employee Retirement Income Security Act (ERISA). The court said the case,...
View ArticleAn Upcoming Debate on Whether Private Equity Should Pay Higher Taxes
If you are looking for a break from the dreary debate over the budget, our friends at Tax Analysts will be holding a roundtable discussion on Friday afternoon on the tax treatment of private equity...
View ArticleThe Democrats Never-Ending Search for Tax Loophole Closers
Senate Democrats are circulating a list of a dozen tax “loopholes” they’d like to close as part of a budget package. It is unlikely that Republicans will agree to any of them except as part of broad...
View ArticleCamp Defines Private Equity as a Business, Would Boost Taxes on Carried Interest
In the tax reform roadmap he released yesterday, House Ways & Means Committee Chair Dave Camp (R-MI) targeted the trillion dollar private equity industry. Not only did he propose to tax the...
View ArticleSix-Year Road Funding, Renewals on Repeat, and Investigations
Highway funding: Will the House GOP play the long game? Ways & Means Chair Paul Ryan wants to pair international tax changes with six-year funding for highways, and he wants it done this year. To...
View Article"The Long and Winding Road... Will Never Disappear..."
The Senate’s six-year highway bill inches forward, after dropping a Social Security provision. Majority Leader Mitch McConnell won 14 Democrats’ votes for the bill after he agreed to drop a $2.3...
View ArticleHow Investment Managers (And Maybe You) Would Benefit From Trump’s Tax Plan
Donald Trump says he’d eliminate the tax break on carried interest. What he doesn’t say is he’d give the investment managers who now benefit from that scheme an even bigger tax cut than they get today....
View ArticleIf Banning Negligent Low-Income Households From Taking Tax Credits Is Such a...
Congress has banned more low-income families who file erroneous tax returns from receiving refundable credits. If lawmakers think this is such a terrific idea, why stop at low-income households? For...
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