Skip navigation
Watchlist Sponsored By :


Current DateTime: 06:06:04 29 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

  • Wines for the Holidays

      Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES


Current DateTime: 06:06:04 29 Nov 2009
LinksList Documentid: 33793611
  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?


Current DateTime: 06:06:04 29 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Democrats Seek Higher Tax on Hedge Fund, Private Equity Managers
By: Reuters | 22 Jun 2007 | 04:18 PM ET
Text Size

Powerful House Democrats on Friday proposed increasing the tax burden on managers of hedge funds and private-equity firms, racheting up the debate on expanding the government's tax grip on Wall Street.

The bill came as Blackstone Group's [BX  Loading...      ()   ] shares rose sharply in the private-equity titan's $4 billion initial public stock offering, the sixth-richest IPO in U.S. history.

Managers who take a share of hedge fund and private-equity fund profits pay taxes at a 15% rate, the rate for capital gains. The legislation would hike the rate levied on their compensation, known as "carried interest," to 35%, the level for income tax.

The legislation was introduced by Reps. Sander Levin of Michigan, a member of the Joint Committee on Taxation; Charles Rangel of New York, head of the tax-writing Ways and Means Committee; Barney Frank, the Financial Services Committee chairman, and a host of other Democrats.

Rep. Levin told CNBC’s “Power Lunch” that his new tax bill seeks to create fairness and is not aimed at private-equity companies."

This is part of our effort to make sure that there's equity in our tax structure," the Michigan Democrat said Friday.

"I don't think we want economic growth on the basis of unfair taxes,” Levin said.  “How do I go to Michigan and someone who is providing services and they're paying ordinary income tax and then they say to me that someone who is in a management company is being paid not for cash they put into the company but because of their services and they're being charged half the tax (rate). How do you give that answer? I want to foster economic growth. It needs to be done within a structure of fairness and that's what this is all about. There's no pile on.”

A swirl of publicity in recent weeks over the billions that Blackstone chief executive Stephen Schwarzman is reaping from the IPO provided a backdrop for lawmakers' expressions of outrage and legislative moves as they target new sources of revenue. Last week, the leaders of the Senate Finance Committee proposed legislation that would raise the tax burden of private-equity firms like Blackstone and hedge funds that go public.

The new House bill would apply to managers of all such investment funds.

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • These four sectors will be the next to lead the market.
  • Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
  • T shirt man
  • From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
  • It may be the most unusual guide to business you'll read.
  • Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
  • "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
ADD COMMENTS
Remaining characters


Current DateTime: 01:00:33 29 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:00:33 29 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:00:33 29 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:00:33 29 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters