–Senate Finance, House Ways & Means Chiefs Say Plan Would Boost Econ
–Democrat’s Plan Would Boost Taxes on Carried Interest
By John Shaw
WASHINGTON (MNI) – Senate Finance Committee Chairman Max Baucus and
House Ways and Means Committee Chairman Sander Levin released Thursday a
revised economic package that would extend a raft of tax cuts that
expired at the end of last year, expand unemployment benefits and health
insurance subsidies for unemployed workers.
Critically, the package also changes the treatment of carried
interest earned by private equity fund managers, venture capitalists,
and real estate investors.
Under the Baucus-Levin plan, instead of being considered as capital
gains, 75% of their carried interest would be treated as ordinary income
for tax purposes. Only the remaining 25% would be taxed as capital
gains. The package also tries to limit the ability of corporations to
use foreign tax credits.
In a statement, Baucus and Levin said the package should help boost
an economy that is in the initial stages of recovery.
“Our economy is just beginning to show signs of recovery, yet too
many hard-working Americans lost their jobs in this recession and we
can’t leave them behind,” Baucus said.
Levin cited the international tax provisions as critical, saying
they would be instrumental in “cracking down on loopholes that encourage
companies to move overseas.”
** Market News International Washington Bureau: (202) 371-2121 **
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