Publicly Traded Partnership Gains from Investment Services Should be Taxed at Higher Corporate Rate According to Latest ABI Poll
Contact: John Hartgen
TRADED PARTNERSHIP GAINS FROM INVESTMENT SERVICES SHOULD BE TAXED AT
HIGHER CORPORATE RATE, ACCORDING TO LATEST
January 7, 2008, Alexandria, Va. —A majority of respondents (68 percent) to
Twenty-two percent of respondents, however, indicated that publicly traded partnerships should continue to be taxed at the lower partnership rate under current law. Seventeen percent “strongly disagreed” and 5 percent “somewhat disagreed” that publicly traded partnerships that derive income from investment advice or asset management services should be taxed at the corporate rate. Eight percent of the respondents did not know or had no opinion on the issue.
After a number of congressional hearings last year highlighted the lower taxation rates on the lucrative gains of private equity, a number of bills, including S. 1624 introduced by Senate Finance Committee Chairman Max Baucus (D-Mont.), proposed changing the current tax code to treat the taxation of hedge fund investment gains as ordinary income, rather than the current lower capital gains rate.
After a year of close scrutiny by Congress, private equity and hedge fund managers emerged unscathed for proposals that would have roughly doubled the taxes on private equity and hedge funds that go public.