Steve Judge, President and CEO of the Private Equity Growth Capital Council, made the following statement in response to House Ways and Means Committee Chairman Dave Camp’s (R-MI) tax reform discussion draft, as referenced in his Wall Street Journal op-ed this morning:
“Last year, private equity invested over $400 billion dollars in thousands of businesses of all shapes and sizes across all 435 congressional districts. This is why it is so disappointing that Chairman Camp chose to single out private equity, real estate, and venture capital investment by exacting a 40 percent tax increase that will discourage new investment. Key policymakers from both parties have already made clear that the discussion around this draft proposal will be brief. Nevertheless, Chairman Camp’s proposal penalizes long-term capital investment, which he and other members of the House Ways and Means Committee have purported to support. It is our hope that as the debate over tax reform unfolds, policymakers will utilize the opportunity to reform the tax code as a way to encourage, not undermine, capital investment in America.”
To learn more about carried interest, watch this educational whiteboard video by clicking here.