The private equity industry has been given a boost after Republican senators
blocked plans to hit companies with a 35% capital gains tax rate.
The decision will be seen as a key victory for the industry because private
equity companies will avoid an extra $6bn (£2.9bn) in taxes for which they would
have been liable if the proposals had been pushed through.
The tax increase was put forward by Charles Rangel, a Democrat Congressman,
but the move, which needed the approval of 60% of the Senate was shot down after
Republican senators blocked it.
Private equity companies had argued that since the bulk of employees’ pay
packets came from investment profits, any change to the carried interest regime
would have a significant impact.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states