Carried Interest Tax Change (Is Still) Dead
Senate Democrats are all back-slaps and giggles today for getting financial reform out of conference, but they also managed to bungle the carried interest taxation issue. As a client alert from law firm Weil Gotshal sums up the situation: On June 24, 2010, the Senate failed for a third time to pass a procedural vote which would have sent the proposed carried interest legislation (H.R. 4213) to the Senate for a full vote on the bill. Senate Majority Leader Harry Reid (D-Nev.) has announced that the Senate is moving on to other matters. Although no further action is currently pending in the Senate on the proposed carried interest legislation, it is possible (and perhaps likely) that the legislation will be re-introduced into the Senate in the not too distant future. We will continue to apprise you of any further developments in this area. The legislation didn't die because of carried interest, mind you, but because Harry Reid and company chose to lump it in with a "Jobs Extenders" bill that ran into unbreakable Republican opposition ("no bailouts when we're not in charge").
