Did you know that certain private equity firms and hedge funds only have to pay 15% on their capital gains? Shouldn’t firms like Blackstone and Fortress Investment Group have to pay 35% like every other law abiding corporation? I think so and so does the government.
Congress is currently considering a bill that would close these loopholes and potentially increase tax revenue by $4 to $6 billion. Currently, private equity firms like Blackstone and Fortress can be organized as partnerships and thus subject to the 15% tax. The new bill would remove this privelage and bump their tax rate up to 35%. Of course, Blackstone is crying all the way to the bank citing that, “the Senate bill, which would effectively raise its tax rate to as much as 35% from 15%, would hurt profitability.”
I, for one, think duh it should hurt your profitability. That 20% should be going to the rest of us as a “tax” on allowing your company to grow and prosper because of the opportunities it has been given by the United States. It shouldn’t be going to pay that multi billion dollar reward to your boss.