Money | Senate Congress Drops Tax Hike for Private Equity Superwealthy investors will get to keep tax breaks they now enjoy By Peter Fearon Posted Oct 9, 2007 12:39 PM CDT Copied Senate Majority Leader Harry Reid of Nev., takes part in a news conference on Capitol Hill in Washington, Friday, Aug. 3, 2007. (AP Photo/Dennis Cook) (Associated Press) A proposed tax hike on some of America's wealthiest investors isn't likely to happen this year, as Senate Democrats say they're shelving a bill that would have eliminated the special tax rate enjoyed by private-equity managers. Senate Majority Leader Harry Reid says a crowded legislative calendar makes considering the bill—the object of a massive lobbying effort—impossible, the Washington Post reports. The bill would have doubled the tax rate for private-equity managers, whose profits are taxed at a 15% capital-gains rate, rather than the 35% rate paid on regular income. Given the hundreds of millions many of them earn, it would have raised $6 billion a year in federal revenue, the Post estimates. Read These Next "Admiral Piett" of the Star Wars universe died from COVID. Trump voter who supported mass deportations could be deported herself. Shooter opens fire on Texas Border Patrol Rescuer in floods gets a poignant question. Report an error