Probably one of the last things on PE professionals' minds right now, but what does Obama's election mean for private equity? He seems intent on raising the capital gains tax up to 28%, which would nearly double the taxes firms have to pay today on realized investment appreciation (which is few/far between right now, I know). Is this a game-changer, or does the asset class keep on chugging as it had during the Clinton admin before the tax relief act?
I suppose this is a moot point for fundraising since all asset classes will be hit by such a tax hike...
It's sad, you'd think Americans would realize that Obama's tax plans are so severely flawed right now -- has he never heard of the Laffer Curve?
where are you getting this number from? it won't even be close. try 20%.
http://blogs.abcnews.com/politicalradar/2008/08/obama-clarifies.html
Well the 28% is derived from numbers Obama articulated earlier. Although to be fair, he has since revised his numbers downwards.
Hopefully he sticks to this 20% number, but we all know how campaign promises go... for both sides
http://www.usnews.com/blogs/capital-commerce/2008/8/18/obamas-curious-c…
Fairness is socialism...what is fair is getting off your ass and being self-reliant not relying on your government for everything
we are f'd
We are f'd because of the moral hazard that exists in the capital markets.
At this point, capital gains is a nice problem to have when most are selling positions for tax loss purposes.
Tax increases/cuts are never permanent. It might take a decade, but the balance of power in Washington will eventually flow move back to the conservatives. Sit tight. lol
http://www.deadstock.ca/ Your closet will never be the same again.
I'd say most PE guys should have gone with McCain: http://www.pehub.com/22572/the-carried-interest-debate-ends/
But DP is a smug bastard who thinks he knows it all, and I wouldn't be surprised if he's wrong on this issue (crossing my fingers). I guess the hope is PE firms will generate any carry at all in the near-term.
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