Friday, November 11, 2011

PEU's Want to Be Left Alone

Carlyle Group co-founder David Rubenstein said at the AVCJ Private Equity Forum:

"We need to make sure that government is leaving the industry alone," said Rubenstein.
That means keeping PEU's preferred tax status and even a name change, long advised by Rubenstein.

Reuters reported the corporate tax rate on private equity firms is half that of non-investment companies and citizens.  Over a five year period The Carlyle Group paid 1% in annual taxes.  I didn't realize citizens only had to pay 2%.

The  most politically connected PEU pays a mere 1%.   That shows what influence billions can buy. 

Update 11-25-11:  They also plan to help China equal the U.S. in financial power, which happens to be a threat, at least in one Carlyle Group Managing Director's eyes.