Baucus Drops Higher Private-Equity Levy From Tax Bill
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Executives at investment partnerships including private-equity firms and hedge funds have won a four-year battle with congressional Democrats over increasing taxes on a large portion of their pay.
U.S. Senate Finance Committee Chairman Max Baucus, a Montana Democrat, omitted a provision to boost tax rates on so-called carried interest from a bill to extend 2001 and 2003 tax cuts for middle-income Americans that is set for a Senate vote tomorrow. The bill also would renew dozens of expired business tax breaks to which the carried interest proposal had been attached as a budget-balancing measure.