Jennifer Harris

The House of Representatives will consider treating three-fourths of a GP’s carried interest as ordinary income, with the remaining one-fourth left at a lower capital gains rate.

The House of Representatives will vote on Tuesday on a second bill that would change tax rates on carried interest – one that is somewhat less draconian, but also permanent.

The Council of Ministers and the ECON Committee have approved versions of the directive, but crucial differences remain in regards to the ‘third country’ rules. The latter group's version also includes a clause that could block LBOs.

The Council of Ministers and the EU Parliament’s Economic and Monetary Affairs Committee have approved versions of the directive, but crucial differences remain in regards to the ‘third country’ rules. The UK and the US have both publicly opposed the third country rules.

Another week, another crucial AIFM Directive vote delayed. Adding to GPs’ anxiety is the fact that the longer the process drags on, the more unfavourable amendments seem to be added to the bill, such as one apparently banning ‘asset-stripping’

It’s still unclear whether carried interest would be affected by a proposal to raise the tax rate on capital gains from 'non-business assets' to 40%.

The EU Parliament’s Economic and Monetary Affairs Committee was scheduled to vote on a final version of the controversial AIFM Directive, but the vote was delayed one week for procedural reasons.

Former US Treasury Secretary Henry Paulson said at a conference last week that he does not support the Volcker rule, nor does he believe it would have saved any failed banks during the financial crisis.

The Private Equity Council’s president, Doug Lowenstein, said at a conference Wednesday a tax hike on carried interest is likely to pass – and it’s just one of several tax measures that will hit GPs in the wallet.

The Private Equity Council’s president, Doug Lowenstein, said at a conference Wednesday a tax hike on carried interest is likely to pass – and it’s just one of several tax measures that will hit GPs in the wallet.