President Bush not supporting VC-Private Equity tax
President Bush said he is against making venture capital and private equity firms pay income tax of 35 percent on their “carried” profits.
We wrote about why VCs and other investment professionals should be paying the higher tax than the 25 percent capital gains rate they currently pay — namely, they are already getting capital gains privileges on the personal money they are risking on these ventures.
We don’t entirely understand Bush’s logic on the matter, because his comments were expressed only vaguely, in reporting by the New York Times (see Bush’s comments lower down in this story, which is mainly about the stock market slide caused by sub-prime lending habits):
Noting that partnerships are a common structure among small businesses, Mr. Bush said he was satisfied with the current tax structure. “We are very, very hesitant about trying to target one aspect of limited partnerships,” he said, “for fear of it affecting small business growth.”
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About the Author, Matt Marshall
Matt launched VentureBeat in September of 2006, with the realization that no one else was covering the entrepreneurial and tech innovation scene with the velocity or depth that he was. Prior to founding VentureBeat, he covered venture capital for the San Jose Mercury News from 2001 to 2006. In 2002, Matt was awarded "Journalist of the Year" by the Northern California Society of Professional Journalists. Prior to working at the Merc, he was a correspondent for the Wall Street Journal in Bonn, Germany from 1995 to 1998, and a writer for the Washington Post in 1994. Matt holds a PhD in Government and an MA in German and European Studies from Georgetown University. In addition to VentureBeat, Matt is also the Executive Producer of DEMO, the leading launchpad event for emerging technologies.
