In response, private-equity firms — whose multibillion-dollar deals have created a class of superwealthy investors and taken some of America’s large corporations private — hired dozens of lobbyists, stepped up campaign contributions and lined up business allies to wage an unusually conspicuous lobbying blitz.
Several prominent lawmakers expressed surprise to find that the managers’ profits, known as carried interest, were taxed as capital gains, for which the rate is usually 15 percent. That is less than half the 35 percent top rate paid on regular income.
Yet another corporate welfare loophole that allows private equity to avoid paying the taxes they owe. What a surprise that the political leaders decide to tax the future generation instead of those paying them huge sums of money today (ok, it is sadly not a surprise that money buys favors in Washington DC). One option to cut the debt passed on to future generations is to cut spending but since spending has exploded over the last 7 years the decision to force our grandchildren to pay instead of paying for it ourselves is something the “leaders” of our country should be ashamed of.
Federal spending in billions – source: fedspending.org
* $2,152 actual spending for 3 quarters which is a rate of $2,869 for a full year. 2007 data not yet available.