PEU's Threaten to Go Offshore

Private equity underwriters threatened to take their business elsewhere should the U.S. Congress make the industry pay the same tax as American manufacturers on profits. I can just picture the head of the Private Equity Council saying something like, "We'll be forced to do what U.S. manufacturers have done and that's take production elsewhere. Many of us will look hard at Halliburton's recent move to Dubai should the people's house make us pay more than the 15% capital gains tax on assets held more than a year. We're counting on our old friend from Bain & Co. to lower taxes. C'mon Mitt, help us out here!"

Just as the U.S. apple grower may need to look overseas to sell product, so may the modern day money changer. Both are facing down an evil challenge. Apple growers face low cost competition from China while PEU's flinch at paying the regular corporate "sinister" tax rate.

The threat of raising taxes is a shot across the bow of the federal government, almost wholly owned by contributions from large money center and securities/investment firms. There may be a political show but don't count on any Congressional puppets to step up and bite the hand or mouth that moves them. If by chance they do leave, Britain may not roll out the welcome mat. Stiff upper lips all around!