No one likes government waste, right? It's taxpayer dollars going down the toilet. And yet, today on Capitol Hill, there may be a lot of waste generated by not one, not two, but THREE Congressional hearings on hedge funds and private equity.
Wait, you say! I will probably get a load of emails (and please send them, I do read them) calling me unpatriotic or a mouthpiece for the wealthy world of hedge funds and private equity. No, I am not a friend of Blackstone's CEO Steve Schwarzman (although, I'd take an invitation to dine on stone crab with Steve any day). But let's break down what's really on going on, on the Hill:
10 a.m. Senate Finance Committee meets on changing the tax treatment of carried interest, effectively raising the income tax on partners in private equity, real estate and oil & gas ventures.
More than a dozen lawmakers back the measure. Today's witness list: tax experts, academics and one venture capitalist. But why not invite one of the members of the coalition formed by Rep. Eric Cantor Republican of Virginia (see video clip below), which is working against the bill. Let's hear from the other partnerships that would also feel the impact of this bill. If there is no acknowledgement that other folks might be impacted, then it seems this bill's sole intent is to raise taxes on rich private equity guys. (Now, that can't possibly be, can it?)