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Publicly Traded Partnership Gains from Investment Services Should be Taxed at Higher Corporate Rate According to Latest ABI Poll

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Contact: John Hartgen

             703-739-0800

            

jhartgen@abiworld.org

 

PUBLICLY
TRADED PARTNERSHIP GAINS FROM INVESTMENT SERVICES SHOULD BE TAXED AT
HIGHER CORPORATE RATE, ACCORDING TO LATEST
w:st='on'>ABI POLL



January 7, 2008, Alexandria, Va. —A majority of
respondents (68 percent) to
w:st='on'>ABI’s latest online poll agreed that
publicly traded partnerships that derive income from investment advice
or asset management services should be taxed at the corporate rate
rather than the lower partnership rate they currently receive. Fifty-one

percent of respondents “strongly agreed” and 17 percent
“somewhat agreed” that publicly traded partnerships that
derive income from investment advice or asset management services should

be taxed at the corporate rate rather than the lower partnership rate
under current law.

Twenty-two percent of
respondents, however, indicated that publicly traded partnerships should

continue to be taxed at the lower partnership rate under current
law.  Seventeen percent “strongly disagreed” and 5
percent “somewhat disagreed” that publicly traded
partnerships that derive income from investment advice or asset
management services should be taxed at the corporate rate. Eight percent

of the respondents did not know or had no opinion on the
issue.

After a number of congressional

hearings last year highlighted the lower taxation rates on the lucrative

gains of private equity, a number of bills, including S. 1624 introduced

by Senate Finance Committee Chairman Max Baucus (D-Mont.), proposed
changing the current tax code to treat the taxation of hedge fund
investment gains as ordinary income, rather than the current lower
capital gains rate.

After a year of close scrutiny
by Congress, private equity and hedge fund managers emerged unscathed
for proposals that would have roughly doubled the taxes on private
equity and hedge funds that go public.


size='3'>ABI members and members of the public
were welcome to submit their response to the statement: “Publicly
traded partnerships that derive income from investment advice or asset
management services should be taxed at the corporate rate rather than
(as currently) the lower partnership rate.”


size='3'>ABI’s Quick Poll is posted on
ABI’s home page,
title='blocked::http://www.abiworld.org/'
href='http://www.abiworld.org/'>www.abiworld.org.
w:st='on'>ABI members and the public are invited to
respond to a question on a timely bankruptcy or insolvency issue. Visit

href='http://www.abiworld.net/quickpoll/'>
color='#0000ff'>http://www.abiworld.net/quickpoll/ to access
the results of previous ABI
Quick Polls.