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Private Equity’s Public Subsidy Is a Tragedy: William D. Cohan

Jan. 23 (Bloomberg) -- The real reason that private equity executives need to be full taxpayers -- paying 35 percent of their income in federal tax as opposed to the 15 percent capital-gains rate they have enjoyed for years -- is not because, generally speaking, they make so much money.

Nor is it because the return they get on what personal capital they risk is dwarfed by the profits they get on their investors’ capital.