The largest U.S. private-equity funds and venture capital firms have relied on a five-year, multimillion-dollar lobbying campaign to protect the carried interest tax break that helped drive presidential candidate Mitt Romney’s 2010 effective tax rate below 14 percent.
Venture capitalists have long distinguished themselves from private equity firms, claiming that they help build companies, avoid borrowing money and pose no risk to the broader economy. Regulators now agree with them.
A jobs bill that includes provisions to more than double taxes on managers of buyout firms would add $134 billion to the federal budget deficit , according to a report likely to sharpen debate on the measure’s price tag.
Top congressional Democrats reached an agreement to increase taxes on managers of buyout firms and other investment funds as part of a jobs bill they plan to put to a vote next week in the U.S. House, lawmakers said.