Republican Presidential hopeful Mitt Romney called for lowering taxes further while cutting government spending. The ex-founder of private equity underwriter, Bain Capital knows the power of tax incentives. Lower capital gains taxes, 15% vs. 20% under the Bush administration, feuled rapid growth in the private equity sector.
Just yesterday Romney's old firm, Bain Capital joined with The Carlyle Group and another PEU to buy Home Depot's Wholesale Supply Division for over $10 billion. Between Bain and Carlyle whose corporate offices are just down Pennsylvania Avenue from the White House, the two firms manage over $100 billion in assets.
However, PEU's preferred capital gains tax rates are the subject of political queries in both the U.S. and Britain. The UK taxes their PEU's at only 10% capital gains rate, something envied by America's private equity community. Not long ago ex. IRS Chief Charles Rossitti, now of The Carlyle Group, testified to Congress that an 8% capital gains tax rate would be good for the economy. That would mean my local sales tax would be the same tax rate as huge PEU's. Something stinks.
Beware that flaming paper bag of "lower taxes" Mitt Romney just threw on your porch through your television.
Just yesterday Romney's old firm, Bain Capital joined with The Carlyle Group and another PEU to buy Home Depot's Wholesale Supply Division for over $10 billion. Between Bain and Carlyle whose corporate offices are just down Pennsylvania Avenue from the White House, the two firms manage over $100 billion in assets.
However, PEU's preferred capital gains tax rates are the subject of political queries in both the U.S. and Britain. The UK taxes their PEU's at only 10% capital gains rate, something envied by America's private equity community. Not long ago ex. IRS Chief Charles Rossitti, now of The Carlyle Group, testified to Congress that an 8% capital gains tax rate would be good for the economy. That would mean my local sales tax would be the same tax rate as huge PEU's. Something stinks.
Beware that flaming paper bag of "lower taxes" Mitt Romney just threw on your porch through your television.
No comments:
Post a Comment