The favorable tax treatment afforded hedge funds
and private equity came under fire again in Congress
this week. On Wednesday, a proposal was floated that would
strip out the grace period built into already unfavorable
legislation recently introduced by the Senate Finance
In addition, Charles Rangel (D-NY), the powerful head of the
House Ways and Means Committee, is expected to propose broader
legislation with no grace period.
A Rangel bill could be even tougher on hedge funds than what
was introduced last week by Sen. Max Baucus (D-Montana) and
Chuck Grassley (R-Iowa), chairman...