Five Senators are attempting to have venture capital managers exempt from a tax increase that would effect carried interest. Carried interest has been treated as long term capital gains which is a significantly lower tax rate. The Senators cited the positive job creation effects that VC firms have on an economy. Four of the Senators are Democrats and that should help because they are the majority party.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aU2.pOjZsvy4&pos=7
Jim Sutliff