File 026650
Email About Private Equity Access to Trump Administration (File 026650)
Email discussing private equity industry's direct access to the Trump administration, including key appointments and tax policy priorities such as carried interest taxation.
Summary
Richard Kahn forwards a news article to Jeffrey E. about private equity firms gaining direct influence in the Trump administration through high-level appointments including Wilbur Ross as Commerce Secretary, Steve Schwarzman chairing the Strategic and Policy Forum, and Jay Clayton leading the SEC. The article highlights private equity's major policy priorities including carried interest taxation reform, tax deductibility of interest, and capital investment expensing, noting Trump and Clinton's shared stance on reducing carried interest taxation rates.
From: Richard KahnSent: 1/19/2017 11:12:21 PMTo: jeffrey E. [jeeyacation@gmail.com]Importance: HighPrivate equity has direct line to new administrationJan. 19, 2017 12:05 PM ET1By: Stephen Alpher, SA News EditorThere's not just Wilbur Ross who will serve as Commerce Secretary, but also Blackstone (NYSE:BX) CEOSteve Schwarzman who will chair the President's Strategic and Policy Forum, and attorney Jay Clayton - whohas advised on numerous major P-E deals - to lead the SEC.Aside from those official posts, the president-elect has met with the heads of Carlyle Group (NASDAQ:CG)and KKR since his election."There seems to be more interest in the advice of real-world practitioners than in the past," says the head of theP-E industry's D.C. lobbying group. "This is encouraging."Indeed. Among P-E's top priorities is carried interest - one of the few things Trump and Clinton agreed onduring the campaign. Carried interest is currently taxed at 23.8% vs. the top ordinary income tax rate of 39.6%.Like Clinton, Trump wanted carried interest taxed as ordinary income, though Trump would lower the top rateto 33%. Other tax law changes Trump is proposing could cut the effective tax rate further - perhaps to as low as25%, or just marginally higher than currently.Another big priority is retaining the tax deductibility of interest. Trump wants to give companies the ability toeither keep that deduction or pass and gain the ability to immediately expense capital investment. A plan byHouse Republicans might not be as favorable.Other players: OAK, APO, FIG, ARESHOUSE OVERSIGHT 026650