Private equity gurus are having a hard time making a case against raising taxes on the industry’s bread and butter, Reuters reports.
A lack of support from pension funds, coupled with a study showing buyout firms can earn even more money from fees than from selling on restructured assets, has undermined the buyout industry’s fight against a proposed tax increase.
Pending legislation would raise taxes on “carried interest”–profits on the sale of assets–at private investment funds to 35 percent from 15 percent.