Private Equity’s Public Subsidy Is a Tragedy: William D. Cohan
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Jan. 23 (Bloomberg) -- The real reason that private equityexecutives need to be full taxpayers -- paying 35 percent oftheir income in federal tax as opposed to the 15 percentcapital-gains rate they have enjoyed for years -- is notbecause, generally speaking, they make so much money.
Nor is it because the return they get on what personalcapital they risk is dwarfed by the profits they get on theirinvestors’ capital.