Pirvate Equity and offshore insurers are the most likely targets for increased taxes under the Obama administration
Private equity funds and offshore insurers are among industries risking tax
increases under the Barack Obama administration, according to the Washington
group of PricewaterhouseCoopers (PwC).
During his campaign, Obama frequently touched on the theme of closing
corporate tax loopholes and ensuring companies paid their fair share. These
proposals are expected to be driven by the desire to handle the impact of new
spending on the deficit, CCN Money reports.
‘What is being talked about is the largest deficit since World War II for
this coming year. The focus will be on trying to shore up our fiscal position,’
Lindy Paull, PwC managing partner of the Washington tax group, said.
She said the thirst for revenue might be bad news for businesses on taxes.
Close to the top of the list of likely targets was a proposal, supported by
House Democrats, to tax private equity fund managers’ earnings at ordinary
income tax rates. Some of that income is now taxed at capital gains rates of