PEGCC CEO: Enterprise Value Tax “Violates Basic Tax Fairness Policy”
Obama’s proposed enterprise value tax has managers worried
By Hazel Bradford
Pensions & Investments
November 14, 2011
Executives in investment management partnerships such as private equity, venture capital, real estate and hedge funds are nervously waiting to see whether Washington will follow through on a proposal to increase the tax when these businesses are sold.
The enterprise value tax proposed by President Barack Obama and some congressional budget negotiators is the latest fusillade against the investment industry. Already on alert against attempts to raise the tax rate on carried interest, industry lobbyists representing such partnerships say this latest twist makes them feel that they have a target on their collective back.
It “violates basic tax fairness policy and seems to single out the private equity, venture capital and real estate industries in a punitive fashion,” Steve Judge, interim president and CEO of the Private Equity Growth Capital Council, Washington, said in a statement.
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