Election doesn't end private-equity fallout

Article by: THE ECONOMIST
Updated: November 18, 2012 - 5:42 PM

Buyout firms like the one Mitt Romney used to run face the prospect of bigger tax bills.

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sek2undrstndNov. 18, 12 7:35 PM

Just found out that Michaels is a Bain Capital/Blackstone Group entity. Michaels same stores sales fell by 0.2% and they have debt of $3.37 BILLION. Won't be long before Michaels goes belly up and we will be left paying for Bain Capital/Blackstone Groups' debt while the 0.01% walk away with millions in fees. In my mind, it's like private equity firms are the house, they gamble using other people's money and they never lose. If gambling winnings are taxed at 40%, shouldn't private equity winnings be taxed at 40%?

redoldsterNov. 18, 12 9:20 PM

Why wouldn't Calpers want "carried interest" taxed at higher tax rates? Whatever private equity managers are persuaded to give up means more for them as owners. It might make more sense to find a "community organizer" who would criticize such a policy. Everyone knows the huge number of businesses and job growth they are responsible for.