House Gives Fund Managers 1-Year Breather on New Tax

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eschwerin@rosemontseneca.com

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2010-05-28 16:26:24

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House Gives Fund Managers 1-Year Breather on New Tax
House Democrats are pushing back the effective date of a proposed tax increase on fund managers.

Under legislation headed to the House floor Friday morning, the effective date on the tax on so-called “carried interest” will be Jan. 1, 2011. An earlier version of the bill had a Jan. 1, 2010 effective date. The bill would tax fund managers’ carried interest at ordinary income rates up to 39.6%, instead of the current capital gains rate of 15%.

According to a statement released by a spokesman for House Ways and Means Chairman Sander Levin (D., Mich.), the delay is designed to give the investment community time to adjust to the levy. The measure is part of a broader package of tax and spending legislation that the House will debate today. The Senate is expected to take it up after it returns from a week-long Memorial Day recess.


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
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