Venture Capital Keeps Its Tax Break
Forbes is reporting that the U.S. Senate appears to have decided to ignore a proposal to raise taxes on venture capital profits.
A proposal in the House of Representatives would change the rate at which carried interest is taxed. If that proposal became law, most of the profits from venture capital and private equity funds would stop being taxed at the 20% as capital gains and instead be taxed as ordinary income, at rates as high as 35%.
While the proposal has been received well in the House, the Senate doesn't seem interested in the measure. An anonymous blogger at Billions for Billions quotes Senate majority leader Harry Reid (D-NV) as saying that the Senate would “stall” the measure…
Source: China Venture News
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