Friday, June 15, 2007

Bizarre Government Regulation: Dems going after one particular company

Here is one classic example to show that government just can't keep politics out of its regulatory decisions:

WASHINGTON (MarketWatch) -- Private-equity giant Blackstone Partners, which is in the process of going public, found itself in the sights Thursday of the powerful Senate Finance Committee as top tax writers introduced legislation that would block publicly-traded private-equity and hedge funds from continuing to enjoy favorable tax treatment.

The legislation would require publicly-traded partnerships to be treated as corporations for federal tax purposes. Under current law, income distributions for many private-equity funds are taxed at the capital-gains rates of 15% -- well below the top corporate tax rate of 35%. . . .


What is the point of imposing a 20 percentage point higher tax rate on a company just because it is publicly traded? Here you have only one company that this legislation could possibly be aimed at.

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