Carried Interest Taxation

Representative John Larson (D-CT) has proposed legislation (H.R. 3417) that would form a bi-cameral committee, consisting of 3 House and 3 Senate members, to study the Federal income tax treatment of private equity and hedge funds.  Such legislation would study issues broader than carried interests, but clearly would address the tax rules for carried interests.

Representative Larson, who has acknowledged the importance of private equity and hedge funds in Connecticut, appears to be straddling the fence and trying to slow down a train trying to gain a little momentum.