Bill May Force Blackstone To Pay Higher Taxes
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Senate legislation would force Blackstone Group LP and Fortress Investment Group LLC to pay taxes as corporations instead of as partnerships beginning in 2012, a move that may threaten Blackstone’s initial public offering later this month. The U.S. Senate Finance Committee introduced legislation today to prevent hedge fund and private-equity firms from using a 20-year-old tax provision that allows investors in publicly traded partnerships to pay capital gains taxes of 15% on income distributions. Companies pay a tax rate of as much as 35%. The measure would give New York-based Blackstone and Fortress five years before being required to pay the higher tax rate.
