Bloomberg – Private-equity firms, trying to derail legislation that would boost taxes on their leaders’ pay, are attacking a provision that would make it more costly for executives to sell their own management firms.
The provision, which also would affect operators of hedge funds, would make executives pay ordinary income tax rates on profits from selling a stake in their own management companies. Founders of other types of businesses would remain eligible to pay lower capital-gains rates when they sell. The House is scheduled to vote on the legislation today.
