Congress is moving into high gear on health care reform, and is looking for revenue raisers to fund it. The carried interest tax on venture capital firms is on the table.
There is a good article in the New York Times written on Friday regarding this; see also this article in the Wall Street Journal. Obama’s budget includes revenue raised from taxing the carried interest as ordinary income in its projections. At this point, it would appear that the likelihood of the carried interest avoiding being taxed as ordinary income is low.
For more information on the carried interest, see CarriedInterest.org. We will keep you updated as we learn more.