Schumer Opposed to Hedge Fund, Private Equity Tax Hike

July 27, 2007 |

Dealbook reports today that Schumer’s opposition to a tax hike on hedge funds and private equity firms is likely a double edged sword …

The private equity industry may have gained an inadvertent “frenemy” in Democratic senator Charles Schumer in its battle to keep Congress from raising taxes on the industry’s gains, The Financial Times’ Lex column says.

Mr. Schumer has said that he opposes proposed legislation to raise taxes on private equity and hedge fund public partnerships, arguing that if limited partnership tax benefits are to be altered for these investment managers, why not do so for other industries, such as oil and gas, in the interests of fairness?

But, The F.T. says, the move may backfire and cause the energy industry to put its considerable lobbying power toward legislation targeting those private equity and hedge funds specifically, rather than defend the principal for all partnerships.

Oh, I get it:  Divide, conquer and then blame the oil & gas industry for killing the tax idea.  One more thing to blame on those pesky oil companies.

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