Buyout Firms to Avoid a Tax Hike: Reid Passes Word Senate Won't Act

[DeepModem Mom]

Source: Washington Post, Page One

Buyout Firms to Avoid a Tax Hike
Reid Passes Word Senate Won't Act
By Jeffrey H. Birnbaum
Washington Post Staff Writer
Tuesday, October 9, 2007; Page A01

Senate Majority Leader Harry M. Reid (D-Nev.) has told private-equity firms in recent weeks that a tax-hike proposal they have spent millions of dollars to defeat will not get through the Senate this year, according to executives and lobbyists. Reid's assurance all but ends the year's highest-profile battle over a major tax increase. Democratic lawmakers, including some presidential candidates, had been pushing to more than double the tax rate on the massive earnings of private-equity managers, who the Democrats say have been chronically undertaxed.

In response, private-equity firms -- whose multibillion-dollar deals have created a class of superwealthy investors and taken some of America's large corporations private -- hired dozens of lobbyists, stepped up campaign contributions and lined up business allies to wage an unusually conspicuous lobbying blitz. Their argument was that higher taxes would run counter to accepted tax policy and slow economic growth.

Some lawmakers have touted the tax boost as a way to pay for such expensive measures as the repeal of the alternative minimum tax, which this year alone threatens to increase taxes on 23 million households. But lawmakers and lobbyists agree that if the tax is not raised this year, its chances are not strong in 2008, either; Congress tends to be leery of tax increases in election years.

In one meeting with industry representatives last month, Reid said the private-equity tax plan would not be considered in the Senate this year, according to a participant. Rather than citing the lobbying push, Reid implied that the reason had to do with the lack of time on the jammed Senate schedule....

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/10/08/AR2007100801704.html

[Dr.Phool]

1. Yeah, they might need their valuable time for something important.

Like censuring moveon.org or whacking Limbaugh on the pee-pee or something.

[FormerDittoHead]

2. But who ELSE is there to speak for capital equity firms? We little guys get EVERYTHING... n/t

[rurallib]

3. The best government money can buy and buy and buy and buy

Place a watch on Washington's tomb. The spinning in the grave is likely to knock it over.

[truebrit71]

4. ROFL!!! "jammed Senate schedule"....what a friggin' joke THAT is...

...it is so "jammed" that you can't find time for anything as trivial as closing a MAJOR tax loophole, but you CAN find time to take a 'sense of the senate' vote to admonish MoveOn.Org?

Harry, it is time to step down. You are about as useful as a kickstand on a jacksass...

[VP505]

5. Hey,

when most of the time they are only working three days a week what do you expect?

[Demit]

6. That's it. Whatever I can do to vote these jokers out of Congress, I will.

Reid and Pelosi and Hoyer and Emanuel—and all other DINOs who are showing their true colors, whether they're in my state or not. I will support any true blue Dem who opposes them in their primaries. I am so disgusted I could spit.

[natrat]

7. harry bends over and takes it in the brown for the american taxpayer once again-wtg

[Robbien]

9. He is not bending over.

His heart was not in the legislation in the first place. It was all for show to mollify the Dem base.

Reid angering big contributing lobbyists by making the uber-rich pay taxes? Not a chance.

[amandabeech]

8. We need to finance campaigns with taxpayer money ONLY.

It might not be the complete answer, but I'm convinced that it might help.

Unfortunately, it will take a Constitutional Amendment to do so, IMHO.

Reid should be ashamed of himself.

[SOS]

10. Another sell out of the American worker.

But fear not!
Our Senators were not bought off with millions in Wall Street lobbying cash.
They're just too darn busy to get around to it.

[Stuckinthebush]

11. Ugh...meet the new boss

same as the old boss.

Yay.

[leftist_not_liberal]

12. “There’s class warfare, all right,”

Mr. Buffett said, “but it’s my class, the rich class, that’s making war, and we’re winning.”
http://www.nytimes.com/2006/11/26/business/yourmoney/26every.html

The party of the (rich) people.

Despicable.

[badgervan]

13. Enough is Enough

Anyone know how we average dems can force our legislators to replace Reid and Pelosi? I know for damn sure that Chris Dodd or Russ Feingold wouldn't be continuously laying down to bush and his enablers. Damn.

[kurth]

14. So what is different about the Dems in Congress again?

Fucking sellouts.