Bill Takes Aim At Private Equity IPOs

Law360, New York (June 15, 2007, 12:00 AM EDT) -- Prompted by the upcoming initial public offering by Blackstone Group, two senators have introduced a bill that would tax limited partnerships as if they were corporations.

The legislation, introduced on Thursday by Senators Max Baucus (D-Mont.) and Chuck Grassley (R-Iowa), would eliminate a tax loophole that allows limited partnerships to pay a 15% tax rate on capital gains, as opposed to the 35% paid by corporations.

“The nature of investment vehicles is changing right before our eyes, and the tax code must keep up with the...
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