Lawyers: Obama likely to raise taxes on private equity

When Barack Obama is sworn into the White House in 2009, private equity firms can expect some changes, among them likely increases to capital gains and carried interest taxation. However, his election also could prompt a greater willingness by overseas investors to invest in the US.

Capital gains and carried interest are “highly likely” to see taxation hikes in the early days of a Barack Obama presidency, according to industry lawyers speaking to PEO's sister website PERE.

Following yesterday’s historic US presidential election, which saw Democrat candidate Obama overwhelmingly beat his Republican rival, John McCain, attorneys specialising in private equity and real estate fund formation said taxes would be among the early contenders for change.

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