Report: Grassley claims lobbyists killed ‘Blackstone bill’

Charles Grassley, ranking Republican on the US Senate Finance Committee, has reportedly said lobbying efforts coupled with market volatility scuttled his attempts to boost taxes on publicly traded financial services partnerships.

The millions of dollars private equity firms spent lobbying against the Baucus-Grassley bill, legislation proposed that would have raised taxes on publicly traded partnerships, was money well spent, according to recent remarks from Iowa Senator Charles Grassley.

Charles Grassley

“The lobbying effort killed it,” he reportedly said at a Reuters Regulation Summit in Washington DC. “They’ve been very successful.”

The Private Equity Council, as well as a slew of lobbying firms and industry groups, inundated Capitol Hill last year to lobby against the Baucus-Grassley bill, as well as proposed legislation that would have more than doubled the tax rate on carried interest.

Grassley, who is the ranking Republican on the Senate Finance Committee, also said the state of the economy has changed his vigorous push for the publicly traded partnership tax rise, Reuters reported.

“I think there’s a caveat now that I wouldn’t have talked about six months ago,” he said. “[Given] how the economy has deteriorated, right now maybe we don’t want to make Wall Street more nervous.”