HOUSE_OVERSIGHT_026545.jpg
2.7 MB
Extraction Summary
6
People
8
Organizations
6
Locations
1
Events
1
Relationships
4
Quotes
Document Information
Type:
News article / web printout
File Size:
2.7 MB
Summary
This document is a printout of a Wall Street Journal article from February 26, 2014, reporting on comments made by Carlyle Group co-founder David Rubenstein at a conference in Berlin. Rubenstein predicted that U.S. tax reform legislation affecting private-equity 'carried interest' profits, proposed by Rep. Dave Camp, was unlikely to pass due to political factors including Max Baucus's departure to China. The document bears a House Oversight stamp.
People (6)
| Name | Role | Context |
|---|---|---|
| David Rubenstein | Co-founder, Carlyle Group LP |
Speaking at SuperReturn conference; doubts tax reform on private equity will pass.
|
| Mike Spector | Author |
Writer of the WSJ article.
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| Dave Camp | Chairman, U.S. House Ways and Means Committee |
Republican from Michigan; proposed cleaning up 'carried interest' tax treatment.
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| Max Baucus | U.S. Ambassador to China |
Montana Democrat; former chairman of Senate Finance Committee; his departure confirmed lowering chances of legislation.
|
| Ken Fisher | Forbes columnist |
Mentioned in the advertisement at the top of the page.
|
| Kravis | Private Equity figure |
Mentioned in sidebar: 'Kravis Warns on Debt Levels'.
|
Organizations (8)
| Name | Type | Context |
|---|---|---|
| Carlyle Group LP |
Private equity firm co-founded by David Rubenstein.
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| Wall Street Journal |
Publisher of the article and the opinion piece by Dave Camp.
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| U.S. House Ways and Means Committee |
Chaired by Dave Camp.
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| Senate Finance Committee |
Previously chaired by Max Baucus.
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| Fisher Investments |
Advertiser at the top of the document.
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| TPG |
Mentioned in sidebar regarding potential public offering.
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| Apollo |
Mentioned in sidebar regarding debt investment.
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| SuperReturn International |
Private-equity conference in Germany.
|
Timeline (1 events)
2014-02-26
Locations (6)
| Location | Context |
|---|---|
|
Location of the SuperReturn conference and dateline of article.
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Country where the conference was held.
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Location where Carlyle Group is based.
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State represented by Dave Camp.
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State represented by Max Baucus.
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Location where Max Baucus is serving as Ambassador.
|
Relationships (1)
Rubenstein commented on Camp's legislative proposals regarding tax reform.
Key Quotes (4)
"U.S. lawmakers are 'unlikely' to take up legislation this year that could potentially increase taxes on deal profits reaped by private-equity managers."Source
HOUSE_OVERSIGHT_026545.jpg
Quote #1
"We can clean up provisions like carried interest that allow certain private-equity firms to get the investment-income tax rate on what anyone else would call normal wage income"Source
HOUSE_OVERSIGHT_026545.jpg
Quote #2
"It's unlikely that will get into law"Source
HOUSE_OVERSIGHT_026545.jpg
Quote #3
"I don't think there is likely to be any tax reform legislation passed by this Congress at all."Source
HOUSE_OVERSIGHT_026545.jpg
Quote #4
Full Extracted Text
Complete text extracted from the document (3,251 characters)
J.S. Private-Equity Tax Change Doubtful This Year, Says Carlyle Co... http://online.wsj.com/news/articles/SB100014240527023038013045...
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MARKETS
U.S. Private-Equity Tax Change Doubtful This Year, Says Carlyle Co-Founder
Suggested Reform Could Increase Taxes on Private-Equity Profits
U.S. Private-Equity Tax Change Doubtful This Year, Says Carlyle Co-Founder
Suggested Reform Could Increase Taxes on Private-Equity Profits
By MIKE SPECTOR
Feb. 26, 2014 5:06 a.m. ET
Feb. 26, 2014 5:06 a.m. ET
BERLIN— Carlyle Group LP co-founder David Rubenstein said U.S. lawmakers are "unlikely" to take up legislation this year that could potentially increase taxes on deal profits reaped by private-equity managers.
Mr. Rubenstein's comments came after the chairman of the U.S. House Ways and Means Committee, Republican Dave Camp of Michigan, said Congress should "clean up" the treatment of private-equity firms' share of deal profits, called "carried interest." These profits are currently treated as capital gains and taxed at a lower rate than ordinary income.
"We can clean up provisions like carried interest that allow certain private-equity firms to get the investment-income tax rate on what anyone else would call normal wage income," Mr. Camp said in an opinion piece published on Wednesday in The Wall Street Journal outlining a series of tax-reform proposals.
More from SuperReturn Conference
TPG 'Contemplating' Going Public
Apollo Weighs Investing in Debt
Kravis Warns on Debt Levels
TPG 'Contemplating' Going Public
Apollo Weighs Investing in Debt
Kravis Warns on Debt Levels
But Mr. Rubenstein, often viewed by private-equity watchers as an authority on national politics since his firm is based in Washington, said various factors would likely prevent any measures affecting buyout firms from taking hold any time soon.
Montana Democrat Max Baucus, previously the chairman of the Senate Finance Committee, was just confirmed as the U.S. ambassador to China, lowering the chances that chamber will take up such legislation, Mr. Rubenstein said. In addition, a term limit will force Mr. Camp to relinquish his committee chairmanship in the House next year, he said.
"It's unlikely that will get into law," Mr. Rubenstein said of Mr. Camp's proposal before an audience at the SuperReturn International private-equity conference in Germany's capital. "I don't think there is likely to be any tax reform legislation passed by this Congress at all."
Private-equity firm managers, including Mr. Rubenstein and founders of other large buyout firms, have argued that carried interest they receive after investing in a company and later selling it should be treated as a capital gain. Proponents of taxing these profits at a higher rate contend the money is compensation
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