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Venture Capital - Friday, April 13, 2007

VCs To Congress: "Please Don't Tax Our Profits"

For the upcoming National Venture Capital Association the theme is globalization but the chatter is about taxation in the US. Says the New York Times: "Talk has begun on Capitol Hill that one way to reduce the deficit would be to raise the tax rate paid by venture capitalists. The chatter has sent a shudder through the industry, where some believe that the visibility of their wealth has made them political targets. I’m hearing, ‘The sky is falling,’ ” said Mark G. Heesen, president of the National Venture Capital Association, which is organizing the annual industry meeting."

The issue at hand is that The Congress is considering a change to the tax code that would re-assign “carried interest” from capital gains to income which would increase the tax rate by as much as 20%.

Read - Tax-Wary Investors May Be Finding the Limelight Too Bright (NY Times)