WASHINGTON, DC-It is looking more likely that the tax characterization of carried interest will indeed be changed. At the very least, the day of reckoning is moving closer in the House of Representatives.
On Monday, it is likely that the House will bring the Extender package to the Rules Committee. The Extender package is a series of tax proposals that are bundled together each year for extension. This year, the carried interest proposal was made part of it--although the industry has been furiously lobbying to have it removed. After the Rules Committee receives the package, it will issue the rule for carried interest--it will either be a closed or open rule--and then send the rule and package to the House floor on Tuesday or Wednesday.
If the rule is closed, then there is no possibility of a change. Even if it is an open rule, the amendments likely to be offered are procedural. Industry associations such as the Real Estate Roundtable say that as of Friday the carried interest proposal remains in the package. There is no schedule as of yet for the Senate--or word on whether the lobbying campaign has had more of an impact in that chamber.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
