127 days ago • Posted by Charles-Henry Monchau
Private Equity executives are nervous about Biden
While Barack Obama talked a good game attacking Private Equity (PE), he backed off eliminating some of PE’s cherished tax breaks, like the so-called carried-interest deduction. Carried interest does allow PE investors to make a lot of money; it also incentivizes them to take the risk and fix companies they would otherwise ignore. Most Democrats these days are more determined than Obama and want carried interest gone for good. Ex-VP and Dem nominee Biden sees ditching carried interest, and other investor-friendly tax breaks, as a “moral issue”. "He will likely do this through a backdoor method by increasing long-term capital gains on millionaires that will make carried-interest deductions largely obsolete", said the New York Post.