Home » » Carried interest is done? Pretty please?

Carried interest is done? Pretty please?

According to this story, the proposed tax hike on carried interest appears to be dead for the time being:
Senator Debbie Stabenow, a Democratic member of the finance committee, told Crain’s Detroit Business on Tuesday a hike in the rate of taxation for carried interest would “not be part of any bill we pass”.
Boy, let's hope so. I understand the desire to go after the hedgies and Wall Streeters and the banking industry in general. Really, I do. But, as I have said before for, oh the last year and a half or so, this would be a disaster in the making for commercial real estate. And I am by no means alone. As the ICSC puts it:

Unlike private equity firms, the carried interest for the general partner in a real estate partnership is not guaranteed income. Most real estate partnerships must exceed numerous hurdles,
which result in the limited partner realizing a return on investment before the general partner sees the first dollar of gain. Moreover, the general partner often experiences a significant “hold” time before seeing that gain.
 So, if you really want to depress the market even more, pass this bill.  If you want activity to improve at least a little, as more and more are predicting will happen in 2010, leave well alone.  And I believe President Obama mentioned something about some capital gains relief for small business too. That wouldn't hurt either.