Private equity executives won a major concession in a battle with the Obama administration over plans to raise taxes when selling stakes in their firms, potentially saving billionaires such as Stephen Schwarzman and David Rubenstein hundreds of millions of dollars.
President Barack Obama and Representative Sander Levin separately signaled this month that proposals to raise taxes on investment performance fees, known as carried interest, won’t apply to profits earned when buyout fund founders and other executives sell some or all of their holdings in their firms. The president and Levin, a Michigan Democrat and the party’s top member on the House Ways and Means Committee, previously backed legislation that would have increased rates for carried interest.
http://www.bloomberg.com/news/2012-02-24/private-equity-avoids-tax-rise-on-stake-sales.html
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