Capitol Hill Update

With the arrival of summer, politicians across the political spectrum will spend a lot of time over the next few months messaging in preparation for the November elections.

The fact that Mitt Romney has now officially secured the Republican Nomination for President and the fact that President Obama’s campaign team has focused on Romney’s tenure at Bain Capital as an election issue means that private equity and the policy issues important to the industry will be frequently discussed in the coming months.

PEGCC is actively engaged on Capitol Hill on three principal tax issues: carried interest, interest deductibility, and pass-through taxation.  It remains unlikely that legislative changes will occur on carried interest and enterprise value, interest deductibility, and the taxation of pass-through entities before the November elections.  Nevertheless, PEGCC continues to lay the groundwork for effective engagement in future debates on these topics either in the lame duck session of Congress or next year when the President (either Obama or Romney) and Congress are expected to consider comprehensive tax reform options in earnest.