Carried Interest Taxation

As we get ready for the Ways and Means Hearings next month, we thought that we would look at some of the issues raised regarding the current carried interest legislation proposals.  Over the next few days, we'll analyze the following issues:

• Does a carried interest represent services income or an investment in a capital asset?
• Will either of the proposals raise revenues for the fisc?
• Will either of the proposals dampen the market for private equity investment?
• Will either of the proposals change the basic "Two and Twenty" deal between private equity managers and investors?
• Is a publicly traded private equity firm taxable as a partnership an erosion of the corporate tax base?

Check back over the next week or so as we begin to analyze the arguments for and against the legislative proposals.