MSNBC- Private equity, hedge fund and real estate executives warned senators on Tuesday that raising taxes on their firms would harm a wide range of companies that benefit from their investments, including developers in poor urban areas.<\/p>\n
Congress is debating whether to force companies set up as limited partnerships \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d and their managers \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d to pay taxes at the same rate as income earned by ordinary Americans. Proposed legislation would raise taxes from 15 percent to as much as 35 percent for profits earned by private equity and hedge funds, and fees paid to their managers.<\/p>\n
Though private equity groups and hedge funds could be tempting targets for lawmakers looking to pay for new federal programs, the industry has been lobbying aggressively against the tax hike and key senators appear to be heeding their concerns.<\/p>\n