Tax Hike Eyed for Hedge-Fund Managers
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WASHINGTON — Congress will begin considering whether to raise taxes for hedge-fund and private equity managers today when the Senate Finance Committee holds the first of two hearings on the portion of fund profits known as carried interest. Amid the growing financial success of hedge funds and private equity firms, some lawmakers, along with a former treasury secretary, Robert Rubin, have suggested that managers of those firms should be paying millions more in federal taxes. The committee will hear testimony from the Treasury Department, the Congressional Budget Office, and the Securities and Exchange Committee. A subsequent hearing will feature hedge-fund managers and other industry representatives, who are likely to voice strong opposition to higher tax rates, a committee aide said.
