The War Against Prosperity
Club for Growth Urges Congress to Reject War on Prosperity
Washington - As the Senate Finance Committee begins hearings on private equity firms today, the Club for Growth urges Congress to reject the war against prosperity and focus on finding ways to cut taxes instead of raising them.
In a bipartisan declaration of war on prosperity, Senator Max Baucus (D-MT) and Chuck Grassley (R-IA) introduced legislation last month to punish private equity firms by imposing an oppressive tax hike on all publicly traded partnerships. The Baucus-Grassley legislation would tax the carried interest earned by publicly traded partnerships at the regular income rate of 35% instead of at the capital gains rate of 15% currently levied on carried interest.
"I feel like we've seen this movie before," said Club for Growth President Pat Toomey. "A couple members of Congress decide that an industry has become too successful or that a particular company is making too much money, so they tell us they will just tax that industry or that company. But the movie always ends the same way: We all suffer. In the case of the Baucus-Grassley tax hike, we suffer through decreased innovation and productivity; reduced competitiveness on the global stage; and lower returns earned by the thousands of universities, foundations, and pension funds that have done fabulously well through their investments with private equity funds. We urge Congress to put the kabosh on 'The War on Prosperity' before the credits roll."
Posted at Press Release at 11:35 AM | TrackBack
