Private Equity Council issues statement on tax legislation approved by House Committee on Ways and Means
The Private Equity Council issued the following statement on proposals to change the tax treatment of “carried interest” investment income for private equity firms and other partnerships as proposed in legislation approved today by the House Committee on Ways and Means.
“We are disappointed with the Committee’s action today and we will continue to oppose legislation to change the tax treatment of carried interest. We remain hopeful that in the end this legislation will not be enacted into law.
“The proposal could put at risk some of the investment activity that has made hundreds of American companies more competitive, often saving or creating jobs in the process. It would put the U.S. out of step with major foreign economic rivals that tax carried interest as a capital gain.
“It would make it more difficult for U.S. private equity firms to compete against foreign governments’ sovereign wealth funds and overseas private equity firms. And it could reduce the enormous returns earned by public pension funds, university endowments, charitable foundations and other investors in private equity.”