Bloomberg- The Bush administration and several top lawmakers signaled that they may not support a push in Congress to increase taxes on buyout firms and hedge funds.
Eric Solomon, assistant Treasury secretary for tax policy, told the Senate Finance Committee yesterday that proposed legislation to increase the tax rate paid by some partners in hedge funds and private-equity firms would undermine the competitiveness of American businesses. The danger to U.S. competitiveness was a theme echoed by senators on the committee, including Democrat Charles Schumer of New York.
The skepticism voiced by the Bush administration and some lawmakers makes it harder for backers of measures in the House and Senate that would increase tax rates on the industry to succeed, said Robert Willens, a managing director and tax- accounting analyst at Lehman Brothers Holdings Inc. in New York.
“The tide is turning quickly,” Willens said. Lawmakers will heed the advice of experts, he said, and “go on to the next thing.”
